I bought a property for my children 15 years ago and was advised to set up a discretionary trust to manage it. It is worth 4 times what I paid for it, but I want to sell so that I can use some of the money to fund their ongoing education etc. They benefit at 21, but I want to sell it now. I would also like to use some of it to buy a house for my daughter (18) while she is at college, putting it into her name. If I sell now and pay CGT, I don't have enough to buy a 2 bedroomed place bearing in mind my other daughter will have to become co-owner in 2 years. Is there any way of reducing or transferring the CGT?

I am making an assumption that the discretionary trust actually owns the property, and does not just manage it. If so, the trustees will be assessable to 28% capital gains tax (CGT) when they sell, after an annual exemption of £5,300. Alternatively, if your two daughters are the two beneficiaries of the trust, then you might consider the trustees gifting the property to them, and applying a gift holdover election to defer the CGT on the transfer. You will also need to consider any IHT implications if the trust transfers cash or the property to your daughters. Expert advice is recommended here.