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HMRC internal manual

Capital Gains Manual

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.