Gifts pre-14/3/89: gifts of business assets
Gifts relief for agricultural land was introduced from 26 March 1974. Gifts relief for business assets was first introduced in 1978. However, there were changes in the conditions for the relief between then and 1989.
The meaning of `business assets’ was basically that which applies after 14 March 1989, see CG66940. If you are unsure about the conditions for relief in a particular year you will need to refer to the appropriate print of the Taxes Acts.
Disposals made by individuals
Hold-over relief was available on gifts of business assets after 11 April 1978 and before 14 March 1989 where the person making the gift was an individual. Relief was not available where the gift was made by a company. The donee always had to be resident or ordinarily resident in the UK but there were different rules where the gift was to:
- an individual,
- a company,
- a body of trustees.
Disposals by trustees
Hold-over relief was available on the transfer of business assets by trustees to a beneficiary after 11 April 1978 and before 6 April 1982. The beneficiary could be an individual or a company and the transfer had to be on their becoming absolutely entitled to the assets or on the termination of a life interest in the assets.
CG33250+ tell you about trustees and beneficiaries generally.
For transfers after 5 April 1982, hold-over relief was only available if the beneficiary was a company.
Gift to an individual
Hold-over relief was only available on a gift to an individual where the gift was made after 11 April 1978 and before 6 April 1980.
Gift to a company
Hold-over relief was available on a gift to a company where the gift was made at any time after 11 April 1978 and before 14 March 1989.
Gift to trustees
Hold-over relief was only available on a gift to a body of trustees where the gift was made after 11 April 1978 and before 6 April 1981.