Holdover relief

Available on land?

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Am I right in thinking that you cannot obtain gift relief (in respect of CGT) on the transfer of land even if the transferor holds shares (5%) in the company which trades on the land?

transferee holds 20%

The trade is an amusement arcade, land is arcade area plus car park.

 

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By michaelblake
01st Jun 2016 11:46

In principle there should be no difficulty with that if the land and buildings are used wholly for the purposes of a trade carried on by a company which is the owners personal company - see TCGA 1992 Section 165(20 and HS295 at https://www.gov.uk/government/publications/relief-for-gifts-and-similar-...

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By Montrose
01st Jun 2016 11:58

I assume you are concerned with TCGA s165. On the face of it the company concerned is a trading company and the "personal company" of the proposed donor. Is not the asset [the land] used by the company-in which case relief should be available under s165(2)(a).

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