IHTM24203 - Gifts with reservation
of benefit: Qualifying conditions for shares and securities
Shares and securities in a company charged under the GWR (
IHTM04091) rules have to satisfy three
conditions to qualify for agricultural relief
- at the time of the gift with reservation
of the shares or securities the value transferred (
IHTM04028) by the gift has to qualify
for either business or agricultural relief (
IHTM24204).
- the donee must retain ownership of the
shares throughout the period between the date of gift and the date
of the GWR charge, FA86/SCH20/para8 (3)(b).
- at the time of the GWR charge the shares
or securities must qualify for relief on the basis of a notional
transfer of value by the donee, FA86/SCH20/para8 (1A)(b) (
IHTM24205).
Before you attempt to establish whether agricultural relief is
due on the notional transfer at the time of the GWR charge you
should consider the interaction with business relief (
IHTM24204). The notional transfer by
the donee determines the rate of relief.
