Gift relief to own limited company

I have a client who is looking to gift some land to his newly formed Ltd co

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I have a client who is looking to gift some land to his newly formed Ltd co. The land has been used solely as farm (business) land for the time it has been owned personally.

Are we able to claim gift relief for the individual against the CGT which would normally arise on the gift. I understand under regular circumstances this is fine my concern was surrounding the recipient of the gift being a limited company he owns 100% of.

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By Calculatorboy
26th Nov 2020 16:49

that sounds pure insanity

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By The Dullard
27th Nov 2020 17:32

How so?

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By The Dullard
27th Nov 2020 17:39

If it is an asset used in the company's business or it is property that qualifies for IHT agricultural property relief, then the legislation says that you can claim holdover relief on such a transfer.

If the individual owns 100% of the company there is probably not a chargeable lifetime transfer of any significance, because the transfer of value is measured by reference to the extent that the individual's estate has been diminished.

Whether it is wise or not is another matter, dependent on the reasons why he wants to transfer the land to the limited company.

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