8 Nov 2023
Gift Hold-Over Relief is a tax relief that effectively defers Capital Gains Tax (CGT). The relief can be claimed when assets are given away (including certain shares) or sold for less than they are worth to help benefit the buyer. The relief means that any gain on the asset is 'held-over' until the recipient of the gift sells or disposes of them. This is done by reducing the donee's acquisition cost by the amount of the held over gain.
The person gifting a qualifying asset is not subject to CGT on the gift. However, CGT may be payable when the asset is sold for less than it’s worth. Gifts between spouses and civil partners do not trigger capital gains. A claim for the relief must be made jointly with the person to whom the gift was made.
If you are giving away business assets, you must:
You can usually claim partial relief if you used the assets partly for your business.
If you are giving away shares, then the shares must be in a company that is either:
The company's main activities must be in trading, for example providing goods or services, rather than non-trading activities like investment.