Mark McLaughlin highlights a potential pitfall when seeking to claim relief for gifts of business assets.
Gifts of assets between individuals can result in a ‘dry’ tax charge; in other words, a capital gains tax (CGT) liability can arise even though no cash has changed hands between the parties. This is because a market value rule generally applies for CGT purposes on the gift of a capital asset.
That’s a relief!
Thankfully, a form of CGT relief can apply for gifts of ‘business assets’ (e.g., an asset
