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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Gifts: business assets: qualifying for relief

TCGA92/S165 (2) (a) & (b)

TCGA92/SCH7/PARA1

To qualify for hold-over relief under Section 165, the gift must be of `business assets’. These are defined in TCGA92/S165 (2). Where the donor is an individual they are

  • Under TCGA92/S165 (2)(a) assets (or an interest in assets) used for the purposes of a trade, profession or vocation carried on

    • by the donor (either sole or in partnership)

    or

    • by the donor’s personal company or a member of a trading group of which the holding company is their personal company. (For disposals before 16 March 1993 read family company for personal company.)

or

  • Under TCGA92/SCH7/Para1 agricultural property which would attract relief from Inheritance Tax under Section 115 IHTA 1984.

or

  • Under TCGA92/S165 (2)(b) shares or securities in trading companies or holding companies of trading groups which are

    (for disposals before 1 April 1996)

    • unquoted shares or securities (that is, neither quoted on a recognised stock exchange nor dealt in on the Unlisted Securities Market)

    or (for disposals after 1 April 1996 and before 9 November 1999)

    • unlisted shares or securities (that is, neither listed on a recognised stock exchange now dealt in on the Unlisted Securities Market. See CG50260).

    or (for disposals after 8 November 1999)

    • unlisted shares or securities (that is, not listed on a recognised stock exchange). Shares listed on the Alternative Investment Market (AIM) are not listed for these purposes. For the meaning of recognised stock exchange see CG50275

    or in the case of listed (or quoted shares up to 1 April 1996)

    • shares or securities in the donor’s personal company. For disposals before 16 March 1993 read family company for personal company.