is holdover relief available?

is holdover relief available?

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I have a client who has a rental property which he wants to pass to a family member at below market value. Would holdover relief be available and if so would this mean that the family member could not claim PPR relief on the house at some future date when they came to sell the property. The house is valued at approx £120K and cost approx £40K 12 years ago.

Many thanks

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By LyneT
07th Oct 2011 08:36

Holdover relief for a gift to an individual unless the asset is a business asset.  The transfer would be at market value.

Any subsequent increase in value would be subject to PPR if it was the main residence.

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By gbuckell
07th Oct 2011 09:35

Trust

One could opt to pass the property through a trust which would allow the opportunity to claim holdover relief. However, this would have the effect of preventing PPR relief being claimed in the future assuming other conditions were satisfied.

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Replying to ireallyshouldknowthisbut:
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By yogibear
07th Oct 2011 09:55

Thank you for that - I did mention the trust route but the parties involved want "to keep everything simple"

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By Steve Knowles
07th Oct 2011 16:16

Business Asset

Unless this is a furnished holiday let it seems unlikely to qualify as a business asset. so no holdover releif would be available.

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