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HMRC internal manual

Capital Gains Manual

Indexation: from 6/4/88: held-over gains

FA80/S79 (1), TCGA92/S165 (4), TCGA92/S260 (3), TCGA92/SCH4 & TCGA92/S53 (3)

Where gifts hold-over relief is claimed on the disposal of an asset, the result is that the acquisition cost for the recipient is reduced by the amount of held-over gain. See CG66980 and CG67090 and FA88/S79 (1), and TCGA92/S165 (4) & TCGA92/S260 (3). In certain cases the reduction is one-half only: see TCGA92/SCH4/PARA1.

In this situation TCGA92/S53 (3), see CG17245, applies, and indexation is given on the reduced amount.

See example in CG17489.


Roll-over relief for business assets

The same principles apply where roll-over relief has been claimed for the replacement of business assets under TCGA92/S152.