HMRC adds valuation and claim route to gifts relief page

HMRC's Capital Gains Manual introduction to relief for gifts subject to Inheritance Tax now tells readers how to value the gift and how to claim.GOV Page CG67030 gained two short sections, Valuation and ClaimsGOV, which point advisers to the existing machinery rather than creating new rules.

The Valuation section states that both the held-over gain and any chargeable gain arising on the gift are calculated from the market value of the asset at the date of disposal, which must be ascertainedGOV; guidance on obtaining valuations and deferring them sits at CG66890 and CG66891. That matches the mechanics the page already describes: section 260 of the Taxation of Chargeable Gains Act 1992 takes the donor's gain computed on market value at disposal and deducts it from the donee's acquisition cost, so the donee's later disposal reflects both their own ownership-period gain and the held-over gain.

The Claims section states that hold-over relief on gifts subject to Inheritance Tax must be claimed using form HS295, with detail and time limits at CG66889GOV. Those claim rules require the claim to be made jointly by donor and donee — except where settlement trustees are the donee, when the donor claims aloneGOV — on the form accompanying helpsheet HS295, signed by both transferor and transferee (digital or wet signature)GOV, and fully completed so the claim is quantified before the donee's eventual disposalGOVGOV. The general time limit in section 43(1) of the Taxes Management Act 1970 applies: within four years from the end of the tax year in which the gift occurredGOV. HMRC will not accept claims that cap relief at a chosen figure such as the donor's available Annual Exempt AmountGOV, and claims must be made by the taxpayers personally unless a party pre-deceases the claimGOV.

The page's standing priority rule is unchanged: where section 260 relief is available, section 165 relief cannot apply by section 165(3)(d). The added text reproduces the standing Valuation and Claims page at CG67035, now surfaced at the introduction page advisers reach first.

Legal basis: TCGA 1992 s.260 with s.165(3)(d); HMRC Capital Gains Manual CG67030 (Valuation, Claims), CG66889 (form of claim, time limits), CG67035; TMA 1970 s.43(1).