Meg Saksida looks at capital gains tax gift relief and some circumstances in which the relief may be available.
In the first three articles in this series, the possibilities of investing in sterling, wasting chattels, chattels costing and being sold for £6,000 and under, enterprise investment scheme and seed enterprise investment scheme investments, and ISAs were discussed.
This month. we turn to gift relief.
What does gift relief do?
Gift relief (referred to as ‘holdover relief’) is available when a taxpayer has either gifted a business asset (or sells it ‘other than at arm’s length’), or disposes of an asset to a trust where the transfer is immediate chargeable to IHT. The relief does not exempt the gain completely; HMRC will