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You may be able to claim Gift Hold-Over Relief if you give away business assets (including certain shares) or sell them for less than they鈥檙e worth to help the buyer.

Gift Hold-Over Relief means:

• you do not pay Capital Gains Tax when you give away the assets
• the person you give them to pays Capital Gains tax (if any is due) when they sell (or 鈥�dispose of鈥�) them

Tax is not usually payable on gifts to your husband, wife, civil partner or a charity.

Eligibility

The conditions for claiming relief depend on whether you鈥檙e giving away business assets or shares.

If you鈥檙e giving away business assets

You must:

• be a sole trader or business partner, or have at least 5% of voting rights in a company (known as your 鈥榩ersonal company鈥�)
• use the assets in your business or personal company

You can usually get partial relief if you used the assets only partly for your business.

If you鈥檙e giving away shares

The shares must be in a company that鈥檚 either:

• not listed on any recognised stock exchange
• your personal company

The company鈥檚 main activities must be in trading, for example providing goods or services, rather than non-trading activities like investment.

Working out the relief

You do not pay Capital Gains Tax on any assets you give away.

You might need to pay tax if you:

• sell an asset for less than it鈥檚 worth to help the buyer
• make a gain on what you paid for it

The person you give the asset to will need to include its cost when they work out the gain on the business assets or shares - if they sell them later.

How to claim

You must claim jointly with the person you give the gift to. Send your claim at the time you give them the gift.

Fill in the form in the relief for gifts and similar transactions helpsheet and include it with your Self Assessment tax return. If you send your tax return online, upload a scanned copy of the form.

Contact HMRC or get professional tax advice if you need help.