Avoiding IHT later, by paying no SDLT plus some CGT now

Tax Planning and Financial

A thought experiment on reducing Tax liability when handing of Rental Properties to an adult child  

If you gift a mortgage free property there is no SDLT - Confirmed

There is no IHT if the donor survives 7 Years -  Confirmed

However There would be CGT due (from the person who gifts the property) to HMRC on the transfer 

So is this potentially a way to transfer Property to a 18+  child in a Tax efficient way? 

It looks like it is

IF the projected CGT cost is lower than (the SDLT + estimated IHT liability)  see calculation below

Has anybody done this or someting similar? Is there a glitch that will stop it from working?

Rough calculation Examples 

Transferring a £1,000k property bought for £300k  Gain £700k 

First and only property 

Worst case on all three numbers

Tax Cost Now

CGT  @ 28% = £196 

Tax Savings 

SDLT (with First Time buyer relief) circa £35k 

IHT (assuming full rate on total value) @ 40% = £400k 

Total savings = £239k 

If the Property was not a first property the SDLT goes up to £101,250 

so the total savings are about £300k 

cc'ed to the NRLA Support team in case they have a comment - But they cannot advise on Tax and Finances so unlikley