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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Gifts: Inheritance Tax: disposals qualifying for relief: outline


To qualify for hold-over relief under section 260, the gift must:

  • be chargeable to Inheritance Tax, section 260(2)(a). See CG67041+; or
  • be covered by one of a number of specific exemptions from that tax, section 260(2) (b) to (f). See CG67043+.

Where a disposal is only partly within either of these then hold-over is available on the appropriate part, TCGA92/S260 (10).

If you are in any doubt about the Inheritance Tax treatment of a gift CG67047 tells you where to find help.

If a gift qualifies for relief under both section 165 TCGA and section 260 relief can be claimed under section 260 only. In these cases section 165(3)(d) provides relief cannot be claimed under section 165 even if relief under section 260 is not claimed.