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HMRC internal manual

Capital Gains Manual

Gifts: who you assess: example

This guidance shows you how to go about recovering tax from a donee.

In 2011-12, A gives a property to B. The chargeable gain arising to A as a result of the gift is £48,000. A has gains on disposals of other assets which amount to £15,000 and allowable losses of £3,000. The net gains are chargeable at 28%.

A filed his Self Assessment return which included capital gains tax as follows:

Net chargeable gains   60,000
Less annual exempt amount   10,600
Chargeable   49,400
Tax due 49,400 @ 28% 13,832

A fails to pay any of the tax. In December 2014, an assessment is made on B to recover the tax on the gift.

That assessment should be made for 2014-15 and cannot exceed the lesser of:

  • the amount of the gain arising on the gift (£48,000)


  • the tax chargeable on the gain resulting from the gift (48,000 @ 28%) £13,440.