CGT holdover relief under TCGA 1992 s 165 is a valuable relief for gifts of business assets and certain other assets. The relief aims to prevent tax from being a hurdle to the succession of acceptable assets by ensuring that a dry tax charge does not arise on a gift. There are various conditions regarding the nature of the asset, the donor and the donee. Relief may be restricted or denied where conditions are not met. For the donor, an election results in the chargeable gain being reduced by the held over again; for the donee, the base cost is reduced by the quantum of the gain held over. A joint election by the donor and donee is required, except for settlements into trust where only the settlor need sign.
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CGT holdover relief under TCGA 1992 s 165 is a valuable relief for gifts of business assets and certain other assets. The relief aims to prevent tax from being a hurdle to the succession of acceptable assets by ensuring that a dry tax charge does not arise on a gift. There are various conditions regarding the nature of the asset, the donor and the donee. Relief may be restricted or denied where conditions are not met. For the donor, an election results in the chargeable gain being reduced by the held over again; for the donee, the base cost is reduced by the quantum of the gain held over. A joint election by the donor and donee is required, except for settlements into trust where only the settlor need sign.
If you are not a subscriber, subscribe now to read this content.
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