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Holdover relief for successive generations

If Bill uses holdover relief to pass assets to his daughter Jane, can Jane then subsequently utilise holdover relief to pass assets to her son Bob and so on down the generations? I have assumed so, but cannot find an answer or example anywhere.

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08th Feb 2010 11:58

There is no general holdover relief

There is holdover only for gifts of business assets or gifts into settlement, so I'm not sure the question is valid.  If you were talking about business assets, for example, there is no reason why successive claims may not be made: the donees will just keep acquiring - effectively - at the asset's base cost, so that if the asset increases in value the held-over gain would get bigger and bigger unlessthe donee drops off the perch and the gain is washed out.

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08th Feb 2010 11:59

Actually

I should have referred to gifts on which IHT is chargeable rather than gifts into settlement - there can be an IHT exit charge and so holdover may apply on the way out of settlement too.

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08th Feb 2010 12:10

Holding over holdover relief!

Many thanks ken, much appreciated. Yes I was referring to business assets.

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08th Feb 2010 13:06

Planning with a partnership?

Just a thought, if these are business assets then you might consider the attractions of estate planning using a partnership. It does all rather depend on the assets and the type of business in which the family is involved.

Virtual tax support for accountants: www.rossmartin.co.uk

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