Jennifer Adams considers the circumstances in which the charge to capital gains tax can be deferred using 'holdover' relief.
'Holdover relief ' (also known as gift relief’) is a tax relief that allows individuals to defer paying capital gains tax (CGT) when an asset is transferred to someone else, typically in the context of business asset transfers although in some cases it can also apply in relation to property transactions.
When claiming this relief, a capital gain that accrues to the donor is deferred and passed on to the donee. The liability to pay CGT is therefore ‘held over’ and only crystallises when the donee disposes of the asset, usually through a sale. Essentially, both the gain and the asset itself are transferred to the recipient.
To ensure a claim is allowed, the transfer must be a gift with little or no consideration. If the donee does pay something, this
