Gift hold-over relief for business assets (UK)
Gift hold-over relief can defer a chargeable gain arising when a qualifying business asset is given away or transferred at less than market value, subject to the relevant statutory conditions and claim. In a simple qualifying gift with no consideration, the held-over gain reduces the recipient’s acquisition cost and may be reflected in their later gain. Partial consideration, business use, the asset and recipient can affect the relief; a gift is not automatically exempt.
Worked example
An eligible donor gives away a qualifying asset worth £100,000 that cost £60,000. If a valid full relief claim is made and no restriction applies, the £40,000 gain is held over and the recipient’s acquisition cost becomes £60,000.
Common mistake
Treating hold-over relief as permanent exemption or assuming that every gift qualifies without a claim and conditions.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |