Asset gifted, then sold

Asset gifted, then sold

Didn't find your answer?

I could do with confirmation whether I'm right on this one...

Client gifted a business asset to his son last summer. Cost is £40k, MV is approx the same.

Now, son wishes to sell asset to a limited co at MV.

No CGT on son as asset sold at MV, therefore no gain.

My only niggling doubt is that son did not pay anything for the asset.

Any thoughts appreciated.

Richard .

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By Richardrussell
19th May 2009 13:02

Thanks Penny and Stephen
Thanks for your comments.

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By User deleted
19th May 2009 11:38

OK
Gift to son is connected so deemed to be at MV = cost so no gain.
From son to company no gain as deemed base cost is again MV.
If not at arms length or if connected then the MV on sale to the company could be challenged.

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