CG64137 - Business Asset Disposal Relief: calculation of the relief: gifts of business assets
Entrepreneurs바카라 사이트™ Relief was renamed in Finance Act 2020 with effect from 6 April 2020. The new name is generally used in this guidance but should be read as applying to times before that date.
A 바카라 사이트˜material disposal of business assets바카라 사이트™ may include gains which could qualify for Business Asset Disposal Relief. Business asset(s) within that 바카라 사이트˜material disposal바카라 사이트™ may be disposed of as gifts and be the subject of a claim under TCGA192/S165 - see CG66450+. A claim under this provision acts to reduce the amount of any chargeable gain which would accrue to the transferor on the disposal, and similarly to reduce the amount of the consideration for which the transferee would be regarded for the purposes of capital gains tax as having acquired the asset.
If the whole of the assets comprised in the 바카라 사이트˜material disposal바카라 사이트™ for the purposes of Business Asset Disposal Relief are gifted and the subject of a claim under TCGA192/S165 then no chargeable gain will arise at that time. In consequence there will be no 바카라 사이트˜relevant gain바카라 사이트™ for the purposes of TCGA92/S169N (1) - see CG64125 - and a claim to Business Asset Disposal Relief would not be appropriate.
If however only part of the assets comprised in the 바카라 사이트˜material disposal바카라 사이트™ for the purposes of Business Asset Disposal Relief are gifted and the subject of a claim under TCGA192/S165 then a chargeable gain will remain at that time and a claim to Business Asset Disposal Relief may be made in respect of the amount of gain that remains chargeable.
On any subsequent disposal of the gifted assets by the transferee any gain is calculated in the normal way. This gain may qualify for Business Asset Disposal Relief if the relevant conditions are satisfied in respect of the disposal by the transferee.