{#}Basic Computation

In the simple case of a gift from donor to donee involving no consideration and where none of the restrictions discussed below apply, hold-over relief is calculated as in the following example:

On 1 April 2020, Dan gifts quoted shares to the trustees of the Goodricke Discretionary Settlement, in exchange for no consideration. At the date of the gift, the shares were worth £500,000. Dan acquired the shares in 2011 for £300,000.

As the gift is to a discretionary settlement, it will be a chargeable transfer for Inheritance Tax purposes. Hold-over relief is available as a result

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