Holdover relief - The practice of deferring capital gains tax liability on a gift by transferring the liability to the recipient. When the recipient eventually sells the gift, the full CGT bill will normally fall due then, and the recipient will have to pay it, not the donor.To put this in context, remember that normally when a person makes a gift of, say, shares to anyone other than his/her spouse, the gift is deemed to have been made at fair market value and will be liable to capital gains tax if a gain has been made. This can be unattractive to the donor because he/she will not actually have made a gain, and won"t have received any money at all if the asset was given freely. Holdover relief puts the tax burden on the recipient rather than the donor, and postpones the time when it has to be paid.
Holdover relief : the practice of deferring capital gains tax liability on a gift by transferring the liability to the recipient. when the recipient eventually sells the gift, the full cgt bill will normally fall due then, and the recipient will have to pay it, not the donor.to put this in context, remember that normally when a person makes a gift of, say, shares to anyone other than his/her spouse, the gift is deemed to have been made at fair market value and will be liable to capital gains tax if a gain has been made. this can be unattractive to the donor because he/she will not actually have made a gain, and won"t have received any money at all if the asset was given freely. holdover relief puts the tax burden on the recipient rather than the donor, and postpones the time when it has to be paid.
Holdover relief