Section 49(4) and 49(1)

This discussion clarifies the cost of acquisition for capital gains tax purposes when a gift is received. Specifically, it addresses whether Section 49(4) applies, making the cost NIL due to no tax paid under Section 56(2)(x) at the time of receipt, or if Section 49(1) dictates the cost should be the market value of the gift (in this case, £2.7 Lacs). The consensus leans towards the cost being NIL if the gift was from a non-relative and Section 56(2)(x) tax was not applicable at the time.