CGT - connected person - property

In 2014 my daughter and I bought a flat for £140,000. The legal title was in both our names and she had 99% equity interest and I had 1%. In 2017 my daughter sold me her 99% interest valued at £235,000.Capital gains tax paid on the sale to me of her interest. Now, following her break up with her boyfriend, selling the house they are in, she wants to buy the same flat from me at £210,000 (the market price). If I sell her the flat at £210,000 and in say 3 years time she sells the flat at £250,000. Is the gain for tax purposes for her £40,000 or is it a different amount as she is a connected person? Also if I sell her the flat at £210,000 ,I have lost £25,000 (ignoring the 1%). Is it a taxable loss of £25,000 or is it a different amount as she is a connected person? All transactions are or would be at market prices. Please let me know Thank you

Hi,

As you have applied market value at the time of acquirement and sale, the connected person rules have no impact. You will have a capital loss that can be used against any future gain. Your daughter will have a gain to report if the sale is over £210,000.

Thank you.

I hope that what HMRC Admin 32 says is right, as it would be fair. I hadn't seen before that using market values renders the connected person rules not applicable.