Taxation of Chargeable Gains Act 1992 Schedule 7 paragraph 1

Agricultural property

Schedule 7 paragraph 1 extends CGT gift hold-over relief under section 165 to disposals of agricultural property, even where the property is not used for a trade, provided that inheritance tax agricultural property relief applies or would apply to the transfer.

• The paragraph applies to disposals of assets that are, or represent an interest in, agricultural property as defined for inheritance tax purposes.
• It removes the normal requirement that the property must be used for a trade in order to qualify for CGT gift hold-over relief under section 165.
• The relief is available where agricultural property relief for inheritance tax is actually given, would be given if there were a chargeable transfer, or would be given but for the clawback rule in section 124A of the Inheritance Tax Act 1984.
• The effect is to align CGT gift relief with the inheritance tax treatment, so that agricultural property qualifying for IHT relief can also benefit from CGT hold-over relief on a gift.