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HMRC internal manual

Capital Gains Manual

Gifts: computation: how to compute the held-over gain

TCGA92/S165 (6) & (7)


There are four stages in computing the held-over gain

  1. Compute the `unrelieved gain on the disposal’ which is the chargeable gain which would have accrued on the disposal apart from
* hold-over relief
  1. 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.
  2. 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


* in the case of a building or structure only part was used for the purposes of the trade, see CG66952


* 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.