Reshma Johar points out when emigration can cause a nasty surprise for business asset hold-over relief purposes, which could leave a person out of pocket when leaving the UK.
The chargeable gain arising from the gift (or transfer at undervalue) of an asset is reduced by the amount of held-over gain (which could wipe out either part or the entire gain). The recipient (or ‘donee’) will acquire the transferred asset with the held-over gain set against the base cost.
A held over gain will generally come back into charge when the asset is either disposed of or when the donee emigrates within six years of acquiring the asset with the gift relief.
This will only arise where the donee ceases to be resident in the UK within six years after the end of tax year in which the asset