09: Other main reliefs

Chattels The disposal of tangible moveable property (ie chattels) with a predictable life of less than 50 years is exempt from CGT, provided the asset did not qualify for capital allowances. The disposal of other chattels (such as antiques) is exempt from CGT, provided that the consideration is not more than £6,000. Otherwise, the chargeable gain is the lesser of the actual gain or 5/3 of the difference between £6,000 and the consideration.

Reinvestment relief is available on all chargeable gains made by individuals who reinvest the gain in shares eligible for the enterprise investment scheme (even if income tax relief is not given). All or part of your gain (depending on the amount reinvested) is deferred until you have sold the shares, subject to certain qualifying conditions being met. The reinvestment must be made within a period starting one year before and ending three years after the disposal.

Rollover relief may be available when disposing of a qualifying business asset and acquiring another qualifying business asset. All or part of the chargeable gain is postponed until the replacement asset is disposed of without replacement.

Heldover gains You may decide to hold over the CGT on gifts of certain assets, As a result, the taxable gain is postponed until the recipient disposes of the asset. The assets that can be held over in this way include:

• Assets that you transfer that are used in your unincorporated business or for a trade carried on by a company in which you hold at least 5% of the voting rights.
• Shares in an unlisted trading company (except when the gift is to another company).
• Certain agricultural property; and transfers that are not potentially exempt for IHT purposes (eg to most – but not all - kinds of trusts).

You cannot claim holdover relief on assets you transfer to a trust in which you, the settlor have, or will acquire, an interest.

Rollover relief on incorporation postpones any gains (eg on property or business goodwill) when you transfer an unincorporated business to a company in exchange for the issue of shares.