Reshma Johar looks at how holdover relief and potential restrictions can apply.
This article follows on from my previous one (‘Relief is at hand’), which reviewed the circumstances when a claim can be made to defer a capital gains tax (CGT) liability from arising (under TCGA 1992, s 165), including a handy checklist.
When considering holdover relief, it may be necessary to consider anti-avoidance provisions as well as whether the transaction falls within the employment related securities legislation.
Case study 1: Transfer of a business asset
Lisa and Tina are sisters who jointly run a tech company based in Manchester. Lisa has reduced her hours over the years and would like to give 25% of the shares to Tina. Lisa will be treated as making a disposal for CGT purposes, which will be