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HMRC internal manual

Capital Gains Manual

Gifts pre-14/3/89: hold-over relief

How to allow relief

In general relief is given in the same way as for 1989 onwards, see CG66982. The held-over gain is deducted from the chargeable gain, leaving in most cases a chargeable gain of nil. The same restrictions for actual consideration (CG66982(2)) apply. For the business assets relief there are restrictions for non-business or partial business use and, in certain situations, for non-business assets held by a company where it is shares being disposed of.

How to recover relief

Normally the held-over gain is in effect recovered on the disposal by the donee, because his acquisition cost is reduced by the held-over gain. But it may be lost if for example the donee’s gain is exempt. This may be because it is his only or main residence, see CG64200+. If the donee emigrates, then CG67270+ applies. If the held-over gain occurred before 1April 1982 then for rebasing purposes no restriction is made for the held-over gain in computing the value at 31 March 1982.

Capital Transfer Tax

If the gift was charged to Capital Transfer Tax, then a deduction is available to the donee on any subsequent disposal. See CG67050+.



  • the gift occurred between 1 April 1982 and 5 April 1988 inclusive, and
  • the donor owned the asset at 31 March 1982, and
  • the donee disposed of the asset after 5 April 1988,

the donee can claim relief under TCGA92/SCH4/PARA2, see CG16980+.