If you give away assets, for example to members of your family, CGT is payable as if you had sold them at their market value. Where the gift consists of assets used in a trade, you and the donee can jointly claim holdover relief. You then do not pay CGT at the time of the gift, but the donee in effect takes over your original cost of the asset. The donee may eventually have to pay CGT on your gain as well as his or her own gain when the asset is sold.
Partial holdover relief is available where the transfer is not an outright gift but the consideration paid is less than the market value of the asset.
You can normally claim holdover relief for gifts of shares in unlisted trading companies and also if you place assets in a trust, provided neither you nor your spouse or civil partner can benefit from the trust. Companies cannot claim holdover relief.Last Updated