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HMRC internal manual

Capital Gains Manual

Gifts: Inheritance Tax: when relief is available

TCGA92/S260(1) and TCGA92/S261

To qualify for hold-over relief under section 260 the transferor and the transferee must be:

  • an individual


  • the trustees of a settlement.

Unlike relief under TCGA92/S165 relief is never available if the transferee is a company.

The transferee must:

For the years up to and including 2012/13 be resident or ordinarily resident in the UK.

For 2013/14 and subsequent years, be resident in the UK.

Relief is not available if the transferee is resident in both the UK and another country and under the relevant double taxation agreement will not be liable to Capital Gains Tax on a subsequent disposal of the asset.

For gifts on or after 10 December 2003, relief is not available in respect of transfers to trustees of certain settlements. The instructions at CG67064+ describe these rules.