Gifts: instalments: sale by donee
If you have accepted an election to have the Capital Gains Tax on a gift paid by instalments and the asset is subsequently sold by the donee or any subsequent owner any outstanding instalments of Capital Gains Tax and any interest on that tax can become due and payable immediately.
These instructions tell you what to do in such cases.
Withdrawing payments by instalments
Before you can withdraw any arrangement to have the tax paid by instalments, certain conditions have to apply. These are that the original disposal
- was by way of gift and the donor and donee were connected persons
- was a deemed disposal by trustees
and the assets are subsequently disposed of for valuable consideration.
To prevent avoidance it is possible to look back along a chain of such gifts.