HMRC have updated their guidance regarding the joint election required for Capital Gains Tax (CGT) Holdover Relief in light of the current Covid-19 restrictions.
Holdover Relief is available when a transfer of certain capital assets takes place at less than market value. The effect is to rollover the arising capital gain from the transferor to the transferee.
- The form requires the signatures of both the transferor and the transferee.
- This is normally a physical signature.
- Due to the current COVID-19 restrictions, the physical signatures can be replaced with digital versions.
- This will be accepted until further notice.
Useful guides on this topic
Capital Gains Tax rates & allowances
An overview of the current rates and allowances.
How to calculate a capital gain or loss
A step-by-step look at the calculation for CGT.
An index to Capital Gains Tax reliefs
A guide to the key CGT reliefs for all asset types.
CGT: Reliefs, disposal of a business or its assets
An outline of Holdover Relief and other business-related reliefs.