The following Owner-Managed Businesses guidance note by Tolley provides comprehensive and up to date tax information covering:
In certain situations, gift relief is available to defer capital gains on gifts of business assets, which would otherwise be immediately chargeable to CGT.
This guidance covers restrictions on gift relief where a donor gives away shares of a company holding non business assets or where only part of an asset or holding period was used for business purposes.
For an introduction to gift relief, including the definition of business assets, and information about making claims and the possibility of paying tax in instalments, see the Gift relief guidance note.
Gift relief will not always be available to completely eliminate the capital gain. Sometimes gift relief is restricted. The most common example when full gift relief will not be available is where a donor gives away shares in his personal company, and that company holds non-business assets.
If this is the case, the amount of the gain which qualifies for gift relief is restricted by the following fraction:
Where:
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