CGT holdover relief between two companies with same shareholders

[marc02]

Where there are two companies, say A and B; both own and manage investment property. Both companies have the same shareholders. Shareholding for each shareholder is at least 25% each. The shareholding is identical in both companies.

The property in question is a building under a single title with multiple self-contained flats.

For operational reasons Company A wants to move some of the flats to Company B, either by creating a new title for those flats and gifting the tiles to Company B or by adding Company B to the existing single title and splitting out the title later.

Since the shareholders are the same (and in the same proportions) can CGT holdover relief apply? (I read something about if the personal shareholders are more than 5% is can apply, but I was not sure).

Thanks

[AdamS93]

No, companies do not get holdover relief full stop.

You are getting confused with rollover relief when a company reinvests proceeds - but even then it would have to be the sale of trading asset rather than an investment asset.

Companies do not pay capital gains tax either. You will also need to consider SDLT.

[marc02]

Thanks for the clarification.