CGT cost for discounted property

When you sell a property establishing the cost of the property for capital gains tax is essential. There are for example lots of property owners who purchased property under the 'right to buy' scheme in the 1990's. These properties were purchased at a significant discount to the market value. Clearly the lower the base cost the larger the gain on a current disposal. In general terms you would be looking to use the actual expenditure incurred by you when calculating the capital gain. It would only be if you were connected with the original vendor or if the original acquisition was not a 'bargain at arms length' that you would be looking to use the market value at the date of the original purchase.