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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Gifts: Finance Act 2004 changes: gifts to certain settlements: definitions: "relevant disposal", "clawback period", "material time"

“Relevant disposal”: a relevant disposal is a disposal by an individual or the trustees of a settlement to the trustees of a settlement on or after 10 December 2003.

“Clawback period”: this period begins immediately after the relevant disposal and ends immediately before the sixth anniversary of the start of the tax year next following that in which the relevant disposal was made.

  • For example, Mr Dombey gave the freehold interest in the offices occupied by his shipping company, Dombey & Son, to the Paul Dombey Settlement on 2 January 2005, a settlement of which he is the sole settlor, and claimed hold-over relief. Neither Mr Dombey nor his wife had any interest in the settlement, and no arrangement is in existence for them to acquire one. On 25 March 2011, Mr Dombey acquired an interest in the settlement. The clawback period is from 2 January 2005 to 5 April 2011 (inclusive) and so the held-over gain may be recovered.

[TCGA92/S169C (11)]

“Material time”: is the earliest time at which circumstances arise as a result of which hold-over relief in relation to the relevant disposal ceases to be available or, as the case may be, is clawed back (or would be clawed back but for fact that the donor had died before the circumstances arose).

[TCGA92/S169C (12)]