CG66624 | Capital Gains Tax and Gifts: Exemptions and No Gain/No Loss: Gifts of Qualifying Corporate Bonds to Charities

Where a person holds qualifying corporate bonds (QCBs) as a result of a takeover or share reorganisation, TCGA92/S116(10) requires the computation of the gain that would have arisen if the shares had been sold at their market value at the date of reorganisation. This gain is deferred and accrues on a later disposal of the QCBs.

If, however, the disposal is to a charity and comes within TCGA92/S257, there will be no charge by reference to the deferred gain either on the donor, or on the charity on a subsequent disposal of the QCBs.