SVM107120 - Capital Gains Procedures - Capital Gains reliefs

A disposal of shares may attract full or partial relief from Capital Gains. It is for the instructing office to determine which reliefs are available and quantify the amount due. However, as part of the risk assessment process valuers need to be aware of the tax at stake in each case. See Chapter 120 of this manual SVM120000 Case Selection, Handling and Settlement.

Details of all exemptions and reliefs can be found in the Capital Gains Manual and the Venture Capital Schemes Manual (VCM).

Hold-over Relief on Gifts of Shares

If the parties to a transaction have claimed the benefit of hold-over relief on Help Sheet HS295 (available on the Internet) you should seek to close the valuation without agreeing a figure with the parties. Help Sheet HS295 asks the customer to state the amount of the gain to be held over. The notes say that the held-over gain should be calculated and, if possible agreed. However, the note explains that where unlisted shares are involved complicated and unproductive work can be avoided by electing to defer agreeing the share values under Statement of Practice SP8/92. See the CG Manual at CG66880.

If the customer chooses to defer the valuation under SP8/92, the Help Sheet makes it clear that the provisional values used for the holdover claim are not binding on claimants or HMRC.

If the customer declines to take advantage of SP8/92, you must proceed with the valuation. You should obtain a copy of the completed Help Sheet from the instructing office before you proceed.

Additional Guidance: SVM150000