Gifts: when relief is not available: donees
Under the current rules hold-over relief is not available where
- the donee is neither resident nor ordinarily resident* in the UK
- the donee is resident and ordinarily resident* in the UK but because of a double taxation agreement is not liable to UK tax if they make an immediate disposal of the asset
the donee is a company which is:
- controlled by non-residents
- the non-residents are connected with the donor, or the non-residents would not be liable to UK tax on a subsequent sale of the company
- the donee is a company or the personal representatives of a deceased person and the gift is not of business assets
- (between 9 November 1999 and 5 April 2003, and on or after 21 October 2003) the donee is a company and the gift is of shares or securities of any kind. For this purpose company includes a unit trust. (CG66887 provides essential guidance on the relevant changes to the legislation which were introduced in FA2000 and FA2004.)
(for gifts on or after 10 December 2003) in certain cases where the donee is the trustees of a settlement (see CG66918+).
For 2013-14 and subsequent years ordinary residence does not need to be considered.