Commentary

I3.612 Hold-over relief for business or agricultural property

IHT, trusts and estates

I3.612 Hold-over relief for business or agricultural property

I3.612 Hold-over relief for business or agricultural property

A CGT relief under TCGA 1992, s 1651 (known as 'hold-over relief') is available where an individual ('the transferor') makes a disposal otherwise than by way of a bargain at arm's length to a person ('the transferee') of an asset which is either:

  1.  

    (a)     an asset, or interest therein, used for the purposes of a trade, profession or vocation carried on by (i) the transferor, (ii) his personal company or (iii) a member of a trading group of which the holding company is his personal company2, or

  2.  

    (b)     an asset consisting of shares or securities of a trading company, or of the holding company of a trading group where either (i) the shares and securities are not listed on a recognised stock exchange3, or (ii) the trading company or holding company is the transferor's personal company4

An asset within this section may or may not be relevant business property for the purpose of IHT business property relief (see Division I7.1). In particular, there is no requirement of a two-year minimum period of ownership before the CGT relief is available as there is for the IHT relief to be available. On the other hand, for the CGT relief to apply in full the asset has to have been used in the business throughout the period of ownership6 and in relation to disposals after 5 April 2003 the relevant definition of 'trading company' etc is narrower than it is for IHT business relief7.

Where a disposal

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