CG66646 - Gifts: of Qualifying Corporate Bonds to Charities etc.

This paragraph is concerned with the situation where a person holds qualifying corporate bonds (QCBs) following a reorganisation or takeover, and disposes of them to a charity etc.. A detailed description of the provisions which apply is at CG53820+. In brief TCGA92/S116 (10)requires the computation of the gain that would have arisen if the shares had been sold at their market value at the date of reorganisation. This gain is deferred and accrues on a later disposal of the QCBs.

If the disposal is to a charity and is such as to come within TCGA92/S257, there will no charge by reference to the deferred gain either on the donor, or on the charity on a subsequent disposal of the QCBs.