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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
, see all updates

Gifts: gifts of business assets: when relief not available

TCGA92/S166 & TCGA92/S167

Relief is not due if the donee is:

  • neither resident nor ordinarily resident* in the UK

or

  • resident in both the UK and another country and not liable to Capital Gains Tax on a subsequent disposal of the asset under the relevant double taxation agreement

or

  • a company controlled by a person or persons connected with the donor who would not be liable to Capital Gains Tax on a sale of their interests in the donee company either

    • because they are neither resident nor ordinarily resident in the UK

    or

    • under the relevant double taxation agreement.

Relief is not due if TCGA92/S260 applies, see CG67040.

  • For 2013-14 and subsequent years ordinary residence does not need to be considered.