CGT Gift Relief - Restrictions

Question 1

Restrictions for Non-Business Assets

A Gain Eligible for Gift Relief is Restricted Where:

Answer 1

• Personal Company Shares Are The Subject of The Gain;
• The Company Holds ‘Non-Business’ Assets.

Question 2

Restrictions for Non-Business Assets

Gift Relief on a Gain is Restricted by The Following Fraction:

Answer 2

CBA/CA x Gain

CBA = MV of Chargeable Business Assets
CA = MV of Chargeable Assets

Question 3

Restrictions for Sales at Undervalue

If a Sale at Undervalue is Made:

Answer 3

A Gain Equal to ‘Excess Proceeds’ (Cash Received - Base Cost) Must Remain Chargeable.