This is a freeview 'At a glance' guide to Capital Gains Tax (CGT) Holdover or 'Gift' Relief. 

What is Holdover (gift) relief? When does it apply? What are the conditions?

Subscribers, see CGT: Holdover/Gift Relief for your detailed version of this guide.

At a glance

This relief reduces the taxable gain on gifts of assets when certain conditions are met.

Without special reliefs for giving, when you make a gift you may well be subject to Capital Gains Tax on it.

Holdover or 'gift' relief

Holdover relief is available when an individual or the trustees of a settlement make a Gift of a capital asset to another person. 

The effect is that you, as the donor (person making the gift), do not pay any tax on disposing of the asset, but instead you pass on the gain to the donee (person receiving the gift) and this is deducted from their base cost.

There are two forms of holdover relief permitted under the Taxation of Chargeable Gains Act (TCGA 1992):

S.260 takes priority, so where both apply, relief must be claimed under s.260.

Qualifying assets for s.165 hold-over relief

  1. An asset or an interest in an asset used for the purposes of a trade, profession or vocation carried on by:
  1. Shares or securities in an unlisted personal company that is a trading company or holding company of a trading group.
  2. Transfers of agricultural property
  3. UK land under the Non-resident CGT regime.

Restrictions on holdover relief

Holdover relief does not apply to:

Holdover relief under s.165 can be restricted:

Qualifying assets for s.260 holdover relief

S.260 applies to qualifying disposals which can include both CGT business and non-business assets, including:

S.260 does not apply to certain transfers, see CGT: Holdover/Gift Relief for when the relief will not apply.

How to claim holdover relief?

See CGT: Holdover/Gift Relief for how to make a claim and what the time limits are.

Useful guides on CGT reliefs:

CGT: Holdover/Gift Relief
Holdover relief is available when an individual makes a gift to another person (individual or company). When is the relief available? What are the conditions that apply?

CGT reliefs: disposal of a business or its assets
Which Capital Gains Tax (CGT) reliefs apply when a person, replaces or disposes of an asset used by a business, the whole or part of a business, or shares in a company?

See also An index to Capital Gains Tax reliefs for other reliefs which might apply to gifts.

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