C3.1601 Disposals of non-business assets qualifying for CGT holdover relief
For the latest New Development, see ND.1820.
Holdover relief for gifts of business assets under TCGA 1992, s 165 is discussed in Division C3.5. Holdover relief for gifts of assets other than business assets1 is only available where the disposal is either2:
• an immediately chargeable transfer for inheritance tax purposes3, or
• subject to one of a number of specified exemptions from the charge to inheritance tax
This relief under TCGA 1992, s 260 takes precedence over TCGA 1992, s 1654.
The types of disposal which are eligible for the relief are described in detail below. There is no requirement that the transferor is UK resident so a disposal can be a non-resident CGT disposal (see C2.1131, C2.1139)5.
The relief is available in respect of disposals made otherwise than at arm's length6 (ie a gift or disposal at less than full value) by an individual, or by the trustees of a settlement. The transferee must also be an individual or trustee7. To ensure that the gifted asset is not easily taken out of the charge to capital gains tax, the transferee must generally be resident in the UK at the time of the disposal8, although relief is also available for gifts of direct or indirect interests in UK land (before 6 April 2019 and after 5 April 2015,