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HMRC internal manual

Capital Gains Manual

Gifts: when instalments can be claimed

You will find the rules for this in TCGA92/S281. These allow Capital Gains Tax on gifts to be paid by instalments where



  • an asset is disposed of otherwise than under a bargain at arm’s length, or the disposal is a deemed disposal within TCGA92/S71 (1) or TCGA92/S72 (1)




  • the chargeable gain accruing on the disposal cannot be wholly held-over under either TCGA92/S165 (see CG66940+), or TCGA92/S260 (see CG67030+) (CG66532 tells you what to do if only part of the gain has been held over) orthe chargeable gain accrued on a clawback under TCGA/S169C of gifts hold-over relief obtained under either TCGA92/S165 (see CG66920 and CG66920A) or TCGA92/S260 (see CG67067 and CG67067A) in circumstances where, at the “material time” (see CG66921C), no part of the gift had been disposed of by any person for valuable consideration after the gift had been made


  • the asset gifted was one of the types of asset listed in CG66520


  • an election is made by the person paying the tax by a notice in writing to an officer of the Board for notices given in respect of the tax year 2004-05 or any subsequent tax year (notices in respect of earlier years must be given to an Inspector). An election should be made within four years from the end of the year of assessment to which the election relates (see CG13750).