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 transfer of the Capital gain from one person to another requires a joint election using the form available within the Helpsheet HS295.

  • 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.

External Link

Helpsheet HS295