Gifts: computation: how to compute the held-over gain
TCGA92/S165 (6) & (7)
There are four stages in computing the held-over gain
- Compute the `unrelieved gain on the disposal’ which is the chargeable gain which would have accrued on the disposal apart from
* hold-over relief
- If any actual consideration has been received see if this exceeds the amount allowable as a deduction under TCGA92/S38. Remember that this does not include any indexation allowance. If there is an excess then you reduce the unrelieved gain in (1) by this amount. See further CG66974.
- If you have to restrict the relief because
* the asset was not used for the purposes of the trade for the whole period of ownership, see CG66951 or * in the case of a building or structure only part was used for the purposes of the trade, see CG66952 or * in the case of shares or securities the underlying assets of the company (or group) included chargeable assets which were not business assets, see CG66970+ * then you reduce the amount you arrived at in (2) by the appropriate fraction. You have now arrived at the held-over gain.