Q&A: CGT and gifts to non-residents

28 Mar 2023

In this week’s Q&A, Croner-i tax adviser Vivienne Cheung considers the capital gains tax (CGT) liability when gifting a property to a relative who is non-resident

My client is UK resident and is looking to gift a residential property to his son, who is not resident in the UK. The residential property was never my client’s main residence so the full amount of capital gain would be assessable.

However, my client wants to know if HMRC guidance HS295 applies as it suggests that gift holdover relief may be claimed for gifts of interests in UK land to or from non-UK residents. Please can you confirm whether this is available to my client.

References to legislation are to the Taxation of Chargeable Gains Act 1992 (TCGA 1992) unless otherwise specified.