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164 Lionel owns 50% of the ordinary share capital in Giraffe Ltd and 2% of the ordinary share
capital in Zebra plc. Both are trading companies and Lionel has 50% and 2% of the voting
rights respectively.
Which TWO of the following would be a qualifying asset for the purposes of gift holdover
relief?
A Part of Lionel’s shareholding in Giraffe Ltd, representing 2% of the total ordinary share
capital in Giraffe Ltd
B A building owned by Lionel and used in the trade of Zebra plc
C Lionel’s entire holding of Zebra plc shares
D A warehouse owned by Lionel and used by Giraffe Ltd for storing raw materialsANS-A,D
Good day,Please i don’t understand why C is not a qualifying asset.I’ll appreciate if you can explain better
As he only owns 2% of the shares in Zebra – nothing, shares, buildings etc is eligable for gift relief and the holding is too small
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