F6-restriction of gift relief

Hi agriphine, firstly my apologies for not replying to your query more quickly but I am currently on holiday and have only intermittent access to the internet.
The CGT reliefs available to individuals are mostly available in respect of qualifying business assets for which the definition changes for each of the reliefs.
For a share disposal to be eligible for Entrepreneurs Relief (ER) they must be shares in the taxpayer’s “personal” trading company – must own at least 5% and be an employee. If the taxpayer does not own at least 5% then no ER is available and the 10% rate will not apply, so a higher rate taxpayer would then be paying tax at 28% on such gains!
For Gift Relief (GR) to be available then the taxpayer does not have to be an employee and any % shareholding in an unquoted trading company will be eligible for relief – the taxpayer is only required to hold 5% if the shares are in a quoted trading company.
If the conditions are not fulfilled then NO relief is available. GR is only restricted (reduced) in either of the following situations:
(1) The gift is not an outright gift but a sale at undervalue where the actual proceeds received by donor exceeds his actual cost (Course Notes page 131 note 3.5), or
(2) The gift is of shares in the taxpayer’s “personal” trading company and investments are held by that company (Course Notes page 132 Notes 3.6 and 3.7)
Hope this helps