Base cost of right to buy property for capital gains

Would the base cost of a property purchased from the council at a discount be: Market value at time of purchase or, Value you paid after discount? Looking at CG14542 it would seem to be market value but this refers to persons and so I worry it does not apply in this situation? Kind regards

Is there no one able to answer this one? From further research I believe: The Right to Buy discount is a statutory provision, so no gratuitous benefit has been conferred by the council. Therefore base cost is the amount paid. Hopefully someone will correct me if I am wrong.

Hi Gavin Anderson,

You would use the sum paid for the property as the purchase price and not the market value, as this sale was at 'arms length'.  
Arms length is a term that means the there is no relation, by blood, adoption, marriage or two or more people who are living together, to the seller.  
CG14550 advises that market value can be used where the transaction is not at arms length.  
CG14550 - Market value rule: acquisition no disposal: disposal no acquisition

Thank you.