CG66882 | Relief for Gifts of Business Assets: The Donor

Individuals

Trustees

Hold-over relief is available for two broad classes of persons: individuals and trustees. Note that companies are not able to claim the relief as a donor, although they may still be involved in a claim as the donee.

Individuals

TCGA92/S165(1)(a) provides that the relief is available to individuals gifting certain assets (see CG66884 for those assets which qualify).

There is no requirement that the donor is UK resident, thus non-UK residents making disposals within the scope of Capital Gains Tax can also access the relief. The circumstances in which this may arise are where a non-resident disposes of:

• Assets situated in the United Kingdom that were for use in a trade, profession or vocation carried on through a branch or agency in the United Kingdom – see CG25500P

• An interest in UK land – see CG73922

• Assets (wherever situated) that derive at least 75% of their value from UK land where the person has a substantial indirect interest in that land – see CG73930

The relief is available for the first of these bullet points as assets used for the purposes of a trade, profession or vocation carried on by the donor qualify under TCGA92/S165(2)(a), see CG66884. The second and third bullet points above are specifically brought into the scope of the relief by TCGA92/S165(7A) to (7D).

Trustees

Relief is also available where the gift is made by the trustees of a settlement, under TCGA92/SCH7/PARA2. The operation of the relief broadly remains the same when the donor is a body of trustees, with the exception that the restriction in TCGA92/S165(7) (see CG66886) does not apply in relation to a disposal that is deemed to occur on a beneficiary becoming absolutely entitled to settled property (TCGA92/S71, see CG37000P) or the termination of a life interest on the death of the entitled person (TCGA92/S72, see CG36450P).