Chapter 21 - Gift Relief

Question 1

Introduction

Answer 1

A gift is a disposal for CGT purposes. The person giving the asset away could have to pay CGT even though they made no proceeds. To calculate that gain, assume proceeds are the market value of the asset at date of gift

Question 2

Deferral Relief

Answer 2

In certain situations, gift relief is available. We defer the gain on the donor by rolling over this capital gain against the base cost of the asset in the hands of the donee.

Question 3

Qualifying Assets

Answer 3

Can be claimed on a business asset being gifted:

• shares in an unquoted trading company
• shares in a personal trading company (any co where the shareholder owns 5% or more of the voting rights)
• Assets used in a sole trade, partnership or personal trading co
• Agricultural land and buildings

Question 4

Claiming Gift Relief

Answer 4

In order for the donor to get the relief, they must make a claim under s.165 or s.260. The election is a joint election.
Time limit is four years from the end of the tax year of disposal.