Gifts: whom you assess: making the donee's assessment
There are certain rules you must follow if you decide you can make an assessment on a donee:
the amount on which the donee is to be charged cannot exceed the lesser of:
- the amount of the gain accruing on the gift
* the amount which brings into charge the tax unpaid
- the donee’s rate of liability is irrelevant and they are not allowed any capital losses
the assessment should be made:
- by the donor’s District
* on the donee in the donor's name
- the donor has no right of appeal against an assessment made on the donee
- a donee who pays tax on an assessment made under these provisions is entitled to recover the amount of tax they have paid from the donor
- where there is more than one donee you apportion the amount assessable between them.
Where the assessment is made in respect of a chargeable gain which accrued as a result of a clawback of relief under TCGA92/S169C (see CG66920 and CG66920A - for hold-over relief under TCGA92/S165 for gifts of business assets, and CG67067 and CG67067A - for hold-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 assessment should be made for the year in which the assessment is raised.