Self-assessment and gift hold-over relief

by **rob200** on Thu Jan 05, 2012 7:59 pm

Hi,

I'm finishing off my 2010-2011 tax return and am not sure where to put some information - I'd be very grateful for any assistance.

In the tax year I was given a gift of some unlisted shares and I have a HS295 form that both the transferor and I have completed. The HS295 form shows an estimated gain to be held-over calculated using the original cost of acquisition and an estimated value at the date of transfer. I haven't subsequently disposed of the shares so have not yet realised any gain.

Do I need to complete an SA108 Capital Gains section in my return (so I can then attach my HS295 form to it)?
If I did it would be mostly blank other than to say I was making a claim and the 'computations include estimates' (boxes 26 and 27) and an explanation in box 36.

Or can I simply attach the HS295 form with an explanation in the 'additional information' section of the main return?

Hope that makes sense!

Thanks in advance,
Rob

by **mullet** on Thu Jan 05, 2012 8:54 pm

You don't need to complete the CG pages SA108 and nor do you need to submit HS295 - since you have acquired rather than disposed of the shares. Just keep everything as you will need the paperwork when you eventually dispose of the shares. Remember that the value that you acquired them at is reduced by the gain arising on the gift. So the giver not only gifted the shares to you, but also in effect the CGT liability on them.

by **rob200** on Fri Jan 06, 2012 12:39 am

That explains why everything I've read about it seemed to be more concerned with the transferor rather than the transferee!

Thanks for the reply, very much appreciated.
Rob

by **okevin** on Fri Jan 06, 2012 9:56 am

I disagree with the above post in one way.

The form does need to be submitted to HMRC but not by you! The donor needs to submit the form either as part of his self assessment or with a covering letter to his tax office.

by **rob200** on Fri Jan 06, 2012 10:39 am

Yes they'll be submitting it as part of their return. They seemed to think I'd need to submit it too as a 'parallel claim' which is why I ended up lost in the various help sheets and hmrc web pages

Thanks,
Rob