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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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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.