This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Capital Gains Manual

Gifts: computation: outright gift

A gives his business to his son B.

The only chargeable asset is goodwill which cost £4,000 in 1983 and is now agreed to be worth £15,000

A joint claim is made for relief under Section 165.

The computation is as follows

A’s unrelieved gain on disposal is Market value at disposal   15,000
Less cost   4,000
Unindexed gain   11,000
indexation allowance (say)   1,500
  gain 9,500
The held-over gain is £ 9,500    
A: Gains before relief   9,500
Less held-over gain   9,500
Assessable gain   Nil
B: Market Value   15,000
Less held-over gain   9,500
Revised cost   5,500