hold over relief

hold over relief

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so if a sister gives her house to her other sister no tax but hold over relief applies.Not a good idea then.

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By johngroganjga
25th Apr 2014 12:00

What holdover relief do you think could be claimed on a residential dwelling?

But yes in principle you are right.  It is in no-one's interest to hold over a gain that would not be taxable in any event.

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By aidanjoseph
25th Apr 2014 12:16

so sister B gets the

so sister B gets the residential property as a gift from sister a.

 

so when sister b sells it he has a large tax bill. Is this correct.

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By johngroganjga
25th Apr 2014 12:25

Whether the bill is large or not depends on the figures, and also on one's opinion of what large is.

But as I have explained in your other thread on this same proposed transaction, sister B's base cost for any future disposal by her will be the market value at the date of the gift from sister A.  She will pay CGT by reference to that figure, but only if she does not live in the property of course.

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By courty61
25th Apr 2014 12:40

Not sure what holdover relief you are claiming though?

Not a business asset for s.165 and not immediate IHT charge under s.260

But if there is no tax anyway because of PPR then the gift makes most sense.

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By aidanjoseph
25th Apr 2014 12:55

bought for 350K value now 470k so PPR applies as sister B will live in the property

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