Business Relief (6) Flashcards
Result of gift holdover relief? (time of the gift)
No gain (or a reduced gain) arising on the donor at the time of the gift
Result of gift holdover relief? (chargeable gain)
Charable gain arises on donee later and will be taxed at appropriate rate of CGT applicable on date of disposal
When a claim for gift holdover relief is made?
Donor may lose entitlement to business asset disposal relief
If the asset qualifies for gift holdover relief?
It is applied before business asset disposal relief
Is gift holdover relief available to individuals not companies?
Just individuals
A gift made in 2023/24 (gift holdover relief)?
Must be made by 5 April 2028
When can gift holdover relief be claimed? (trade)
Assets used in trade of the donor, the donor’s personal company
When can gift holdover relief be claimed? (shares and securities)
Share and securities of trading companies provided they are not quoted on a recognised stock exchange, part of an individual’s personal company
When does a company qualify as an individual’s personal company?
If at least 5% of the voting rights are owned by the individual
If actual proceeds received < original cost of the asset?
Gift relief available = all of the gain
If the actual proceeds > original cost of the asset?
Any excess = chargeable to CGT at date of the sale at undervaluation
Gift relief available = remainder of the gain
What are chargeable assets?
Assets which would give rise to a chargeable gain on disposal
What are chargeable business assets?
Assets that are used for the purposes of a company’s trade only and excluding investments such as shares
Gain eligible for gift holdover relief?
Total gain * (market value of CBA/market value of CA)
Market value of proceeds (gift holdover relief)?
First part of computation
