Illustrations - gift relief
In this lesson, you'll learn how gift relief works in practice and how it affects both the donor's and recipient's tax position. Gift relief allows you to defer a chargeable gain when you gift shares in an unquoted trading company, but the rules change if you receive any actual consideration.
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In this lesson
- 0:00 Gift relief on share disposal overview
- 0:23 Scenario one: Gifting shares with relief claimed
- 0:47 Calculating deferred gain and recipient's base cost
- 1:15 Scenario two: Sale at undervalue with relief
- 1:51 Computing immediate gain and deferred relief
- 2:16 Recipient's adjusted base cost calculation
About this lesson
Through two worked scenarios—one involving a straightforward gift and one involving a sale at undervalue—you'll see exactly how to calculate the immediate chargeable gain for the donor, determine the deferred gain, and establish the recipient's base cost for future disposals. This is essential knowledge for the Taxation (TX) paper and reflects real situations you'll encounter in practice.
Duration: 2m
Transcript
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