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HMRC internal manual

Capital Gains Manual

Gifts: whom you assess: recovery of tax from the donee


Where you have a case involving a gift then, unless a hold-over claim, see CG66940+ andCG67030+, has been made, you assess the donor who is responsible for payment of anyCapital Gains Tax due. However, in certain circumstances, you can recover the tax from thedonee. The rules for this are set out in TCGA92/S282. These tell you that:

  • if the donor has been assessed to Capital Gains Tax on a gift and fails to pay the tax within twelve months of the due and payable date


  • you can recover the tax from the donee

Where the assessment is made in respect of a chargeable gain which accrued as a resultof a clawback of relief under TCGA92/S169C (see CG66920 and CG66920A - for hold-overrelief under TCGA92/S165 for gifts of business assets, and CG67067 and CG67067A - forhold- over relief under TCGA92/S260 for gifts of non-business assets)

  • references to the donor are taken to be references to the person who made the “relevant disposal” (see CG66921C), and
  • references to the donee are taken to be references to the trustees of the settlement to whom the relevant disposal was made.

The instructions at CG66501+ tell you how to recover the tax.