Gifts: Finance Act 2004 changes: gifts to non settlor-interested settlements: relevant individual has interest in settlement before hold-over relief is claimed
Subject to certain exceptions, a claim for hold-over relief under TCGA92/S165 in relation to a “relevant disposal” (see CG66921C) which is made after the “material time” (see CG66921C) is not a valid claim if the relevant disposal is to the trustees of a settlement where
- in computing the amount of the held-over gain in respect of the “relevant disposal” (assuming that no gifts hold-over relief is available on that disposal), the amount of expenditure allowed as a deduction would need to be reduced on account of gifts hold-over relief obtained under TCGA92/S165 or TCGA92/S260 in respect of an earlier disposal (whenever made) by an individual (the “relevant individual”),
- within the “clawback period” (see CG66921C), the relevant individual acquires an “interest in the settlement” (see CG66921A), or an “arrangement” (see CG66921A) comes into existence under which he or she will or may acquire an “interest in the settlement”.
[TCGA92/S169C (1), (3) and (4)]
The exceptions to this general rule are explained in CG66924.
Note that the “relevant individual” need not have any connection whatsoever to the person who made the “relevant disposal”.
Officers of the Board are given powers to obtain information for the purposes of TCGA92/S169B to TCGA92/S169F. Penalty proceedings under TMA70/S98 can be taken against someone who fails to produce this information (see CG66925).