Readers’ forum: Holdover relief

We have recently taken on a new trust client where it appears that a holdover claim under TCGA 1992 s 260 on the transfer of a property to a beneficiary in 2015-16 was not made. If this is the case then the client is outside the normal four year time limit for making the necessary claim. However when we come to disclose this to HMRC we believe that it would issue an assessment to collect the tax and that this could then provide an opportunity to make the necessary claim either in accordance with TMA 1970 s 43A if there was no careless or deliberate behaviour or s 36 if there was careless or deliberate behaviour.

HMRC’s Capital Gains Manual at CG66889 seems to confirm this when there is no careless or deliberate behaviour but the wording when looking at a situation where...