Hold-over relief allows to defer a gain that would otherwise arise in relation to a disposal. No capital gains tax (CGT) is due in respect of the disposal, but the base cost of the asset is reduced by an equivalent amount. This document discusses the types of reliefs available, procedure of withdrawing a claim, restriction on relief. This also covers rules on transfers to non-residents and claw back of relief.
Points discussed within this guidance note:
> Business hold-over relief
This note covers assets that qualify for business hold-over relief and assets which are not covered.
> General hold-over relief
Hold-over relief is generally available for any disposal on which inheritance tax is chargeable (or would be chargeable except for the application of the inheritance tax annual exemption). This note explains the circumstances by which holdover relief is available.
> Making and withdrawing a claim
> Calculation of the exit charge before the first TYA
> Restriction on relief
> Gifts to settlor-interested trusts
> Transfers to non-residents and clawback of relief
> Transfer of UK residential property to non-residents
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