Commentary

C3.502 Holdover relief for gifts of business assets—conditions for relief

Capital gains tax
Capital gains tax | Commentary

C3.502 Holdover relief for gifts of business assets—conditions for relief

Capital gains tax | Commentary

C3.502 Holdover relief for gifts of business assets—conditions for relief

The relief generally applies to gifts by an individual (referred to here as 'the transferor')1 to a person ('the transferee') who is resident in the UK, though gifts of UK land to non-residents also qualify (see C3.509)2. There is no requirement that the transferor is UK resident so the following disposals can qualify for the relief:

  1.  

    •     a non-resident CGT disposal (ie one relating to UK land)3 (see C2.1131, C2.1139)

  2.  

    •     a disposal of assets situated in the UK for use in a trade, profession or vocation carried on through a UK branch or agency (see C1.602)

In addition, relief is also available for following:

  1.  

    •     disposals by a partnership, because the disposal is deemed to be made by the individual partners4

  2.  

    •     certain disposals by trustees (see C3.506)

Holdover relief for gifts of business assets—assets on which relief can be claimed

The assets in respect of which holdover relief under TCGA 1992, s 165 may be claimed are5:

  1.  

    (a)     assets used in a trade, profession or vocation carried on by6:

    1.  

      (i)     the transferor

    2.  

      (ii)     the transferor's 'personal company'

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