hold-over relief

hold-over relief
England, Wales
A capital gains tax deferral relief. The chargeable gain (chargeable gains) is not taxed when it arises, but instead is held over and added to the next gain which arises (if any).
Hold-over relief only applies to:
• chargeable lifetime transfers, or distributions from relevant property trusts on which inheritance tax is immediately chargeable (section 260, Taxation of Chargeable Gains Act 1992 (TCGA 1992)).
• Any lifetime gift of business assets (section 165 and Schedule 7, TCGA 1992).
If both section 260 and 165 relief applies (for example, because business assets are given to a relevant property trust), then the claim must be made under section 260 (not section 165).

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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