My accountant forgot

[sunny3000]

My mother disposed of her interest in a property by transferring her share into a trust. To avoid a Capital Gains Tax charge she should of made a hold over relief claim which will delay the capital gains tax liability until the property leaves the trust on sale or transfer to the beneficiaries. I found out today that her accountant who prepares her tax reutrns had forgotten to elect this hold over and the two year time limit has gone as this was done in July 04. Please help, will there be a large liability?

[cta]

Presumably he not only forgot to claim holdover relief, but also forgot to include the capital gain on her return in the first place ?

All is not lost since the time limit for holdover relief is 5 years from 31 January following the end of the tax year. In your mothers case 31 January 2011.

You do not give figures so I cannot say whether there will be a large liability, but you should seek advice to assess the level of liability involved before claiming holdover relief.

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