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CG66620 | Capital Gains Tax and Gifts: Exemptions and No Gain/No Loss: Introduction

From HM Revenue & Customs · Capital Gains Manual

As outlined in CG66450, gifts to certain bodies will be treated as taking place for consideration that produces neither a gain nor a loss. This section discusses these in more detail. Gifts fall within these rules if they are to:

  • Charities, registered community amateur sports clubs or specified institutions

  • Employee trusts

  • Housing associations

  • The nation or various bodies, of assets considered to be national heritage

{#}Charities

Charities and Capital Gains Tax are discussed from CG67500C. The definition of ‘a charity’ for Capital Gains Tax purposes is in FA2010/SCH6, see CG67501.

If you are in any doubt as to whether or not a particular organisation is a charity you should refer to the Charities Technical Team within the Individuals Policy Directorate.

{#}Registered Clubs

TCGA92/S257 extends the no gain/no loss treatment on gifts to registered clubs, defined by CTA10/S658 as registered community amateur sports clubs.

If you are in any doubt as to whether or not a particular organisation is a registered club you should refer to the Charities Technical Team within the Individuals Policy Directorate.

{#}Specified Institutions

TCGA92/S257 also provides for the no gain/no loss treatment on gifts for national purposes, as defined by IHTA84/SCH3. A list of the institutions that fall within this definition is at IHTM11224.

{#}Employee Trusts

As detailed in CG36000P, gifts by an individual or a close company to certain employee trusts that qualify for favourable Inheritance Tax treatment can have the arising gain reduced or calculated on a no gain/no loss basis.

{#}Housing Associations

Where an estate or interest in land is gifted to a ‘relevant housing provider’, see CG66635, a joint election by donor and donee can be made such that the disposal takes place at no gain/no loss.

{#}National Heritage

Under TCGA92/S258, gifts in the following circumstances are exempt from Capital Gains Tax:

  • Gifts to the nation (as defined by paragraph 1 of schedule 14 to the Finance Act 2012)

  • Gifts of property of significant national, historic, artistic or scientific interest as defined by IHTA84/S31, or property that could be so designated, to an institution listed in IHTA84/SCH3 (see IHTM11224), or to a person giving such an undertaking as required by IHTA84/S31 (e.g. granting the public reasonable access)

  • A disposal of an asset to the Board of HMRC in lieu of inheritance tax (see CG73335)