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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Gifts: hold-over relief: recovering the gain: introduction

This section of the instructions is concerned with the situation where hold-over relief has been given in respect of the disposal of an asset, and the donee’s residence status changes. . Different rules apply to individuals, trustees and companies.

Donee becomes non-resident

For the years to 2012-13, if you learn that an individual donee has become (or may become) neither resident nor ordinarily resident in the UKor for 2013-14 or a later year the individual has become (or may become) not resident in the UK, you should consider whether an assessment is required in respect of any held-over gains. Any forms CG130 which have been received by a donee’s responsible office should be reviewed.

Where trustees have become non-resident under the tests in TCGA92/S69, see CG33370+, or although still resident under those tests have become non-resident as a result of a Double Taxation agreement, see CG67280.

Where a company becomes non-resident, see CG67280.

Summary of conditions

An assessment on an individual will be required in respect of held-over gains where there has been

  • a disposal of an asset to that individual,


  • hold-over relief was allowed on the disposal under

    • Section 79 Finance Act 1980 after 5 April 1981


    • Section 126 CGTA / TCGA92/S165 after 13 March 1989


    • Section 147A CGTA 1979 / TCGA92/S60 at any time,


  • the asset, or part of the asset, is still owned by the individual,


  • the change of residence occurs within six years of the end of the year of assessment in which the held-over gain accrued.