CGT holdover relief to Discretionary Trust

[marc02]

Where an individual owns shares in a company and that company owns and manages investment property, and those shares are gifted to a discretionary trust, does hold over relief apply?

[AdamS93]

maybe, and maybe not. You haven't really given us much information to go on have you.

There are a number of conditions you have to meet to be entitled to gift holdover relief.

[marc02]

I was trying to follow the HMRC webpages, but was getting a bit lost. What’s the sticking point? Or what do you need to know?

[maths]

Yes, hold-over relief will principle apply (if TCGA 1992 s260 satisfied)

[marc02]

Thank you. Sometimes easier to read the Act than HMRC pages! Having read that:

Re TCGA 1992 s260 1C what happens if the settlor forgot to claim? Does the holdover fail? If a late claim were rejected who is the liability with; the settlor or the Trust?

[maths]

The claim is made by the settlor alone; trustees not involved.

If settlor does not claim or simply forgets to claim any CGT liability arising on the disposal is that of the settlor (as it is him/her who makes the disposal).; the claim fails.

[marc02]

Thank you. Have a very similar question about company to company, but it’s probably appropriate to ask in the new thread.