Mr Y trades as a printer. The value of the goodwill at 31 March 1982 was £50,000. The value of the goodwill on 31 March 2011 was £200,000 on which date he transferred it to Y Ltd, a company owned by his sons, for shares valued by SAV at £80,000.
The unrelieved gain (A) is £150,000.
Actual consideration (B) is £80,000.
Allowable expenditure (C) is £50,000.
In this case the held-over gain is restricted by (B-C), £30,000, and therefore Mr Y has a held-over gain of £120,000. If the shares were valued at over £200,000 there would be no hold-over relief at all.