Taxation of Chargeable Gains Act 1992 section 67

Provisions applicable where section 79 of the Finance Act 1980 has applied

Section 67 deals with the capital gains tax consequences of gifts made before 14 March 1989 where gift relief was claimed under section 79 of the Finance Act 1980, particularly where the gift also gives rise to an inheritance tax charge.

• Where a gifted asset also attracts inheritance tax, the transferee may deduct from their chargeable gain the lower of the inheritance tax on the asset or the chargeable gain itself
• If the transferor dies within seven years and inheritance tax is recalculated, corresponding capital gains tax adjustments must be made
• Where the asset was gifted into a trust and the trustee is later deemed to dispose of it, any chargeable gain on the trustee is capped at the amount of the original held-over gain
• If the donee ceases to be UK resident within six years of receiving the gift while still holding the asset, the held-over gain is triggered as a chargeable gain