Taxation of Chargeable Gains Act 1992 section 257

Gifts to charities etc.

Section 257 provides capital gains tax relief for gifts and other non-arm's length disposals of assets to charities, registered community amateur sports clubs, and national heritage bodies.

• Gifts or disposals below cost to qualifying recipients are treated as made for a consideration producing neither a gain nor a loss for the donor
• Where the charity later disposes of the asset, it inherits the donor's original acquisition date and history of ownership
• Where income tax or corporation tax relief is available on gifts of qualifying investments (such as shares, securities or real property) to charity, the charity's deemed acquisition cost is reduced by the amount of that relief
• Where trust assets become absolutely entitled to a charity otherwise than on the death of a life tenant, the trustees are treated as disposing of those assets on a no gain/no loss basis