CGT following Deed of Variation

My mother purchased a 25% share in a 200k property in 2008. The 25% was passed to my father via a deed of variation in 2023 when the property was valued at 350k. The property s now being sold for 450k. Will my father's acquisition cost for CGT be 25% of 200k or 350k?

Hi ,
 

It will be the original value so 25% of the £200k .

Thank you .
 

Thank you. Please could you provide the Tax Manual reference/section that supports this decision?

Hi ,
 

Please refer to : Capital Gains Tax: what you pay it on, rates and allowances   . Thank you .

Hi HMRC Admin, The weblink to the general CGT pages does not provide evidence for your original answer. Please provide a reference/link to the relevant section in the formal Tax Manual?

Hi,
You can see guidance here:
CG31630 - Death and Personal Representatives: Variation of the devolution of an estate: Instruments of variation: CGT effects: if conditions satisfied
Thank you.

Hi HMRC Admin, Surely if the Deed of Variation/Instrument of Variation is enacted upon the death of my mother in 2023, it would be as if my mother had left my father the 25% share in her will at the time of her death. Therefore, his base cost for CGT purposes should be the value in 2023?

Hi N Finance,
As already stated, we cannot answer specific examples on this forum and should you need further advice, you will need to contact us direct.
Capital Gains Tax
Thank you. 

Not HMRC...N Finance, you are correct. If, for example the Will had passed the property to your father your father's base cost would be the probate value at that date. Noting the Deed of Variation, the estate was "varied" and the value on the enactment is the base cost for your father, in both cases, your late mother's original acquisition cost becomes irrelevant to the successor/inheritor/assignee under deed.