Gifted Equity Or Concessionary Purchase? Capital Gains Tax Implications???

anon_user1234

Hope you are well! I am in a slightly complicated property purchase situation, and any help answering the below queries would be much appreciated!

- Me and my partner are looking to purchase my dads property (one that he has used as an investment rental property for the last 20 years).
- Me and my partner both each have our own residential property, so this will be purchased jointly as an investment using a BTL mortgage. 
- The market value of the property is 500k. My dad is looking to provide a 'gifted equity' of 200k. Therefore I need to raise 300k.
- Of the 300k I need to raise, the bank is happy to lend 75% of this (225k) as long as I have a 25% deposit (i.e. 75k).

Question 1 - Is the above example classified as a concessionary purchase?
Question 2 - Will the "official" land registry sold price be 500k or 300k?
Question 3 - Will my dad need to pay CGT on the concessionary price of 300k, or based on market value (500k)?
Question 4 - If the 'official price' is 300k (i.e. if they don't recognise the 200k deposit in the final sale price), then when I come to sell this investment property, does that mean I will be liable for CGT for anything above the 300k mark??

Ideally I'd prefer if the sold price on paper is 500k, so that when it comes to selling the property, I will only be liable for CGT on anything above the 500k mark!

Any help would be much appreciated! Kind regards!

SDLT_Geek

For capital gains tax a sale to a family member not at arms' length will be treated as being for market value.  Some of the issues are dealt with here: https://www.blakemorgan.co.uk/bank-of-mum-and-dad-concessionary-purchases/