My client owns part of land and buildings which is used in his trading company.
He owned 15% of the L & B but following his wife passing away he now owns 30%.
100% of the land is worth £5m and his original base cost for his 15% is £50k. He inherites his wifes 15% which had a value of £750k on death.
He has now gifted his 30% share to his children and I am due make a holdover relief claim. Are my assumptions below correct in terms of the gain heldover:
Proceeds £Nil, but MV of 30% is £1.5m
Cost (£50k + £750K) £800k
My main query was that the uplift in base cost on death of his wife would also be used as part of the claim, as it would have been on a sale of the asset so I assume so?