TCGA92/S62 (5)For Capital Gains Tax purposes the practical effects of a Donatio Mortis Causa are very similar to those for assets transferred on death. However the legislation arrives at this result in a different way. Instead of deeming there to be no disposal of the asset by the deceased, the legislation in TCGA92/S62 (5) says that no chargeable gain accrues to the person making the disposal. As allowable losses are to be computed in exactly the same way as gains, TCGA92/S16 (1), it also follows that no loss is allowable in respect of such a gift.
GOV.UK