Readers’ forum: Treatment of rollover on gift of land to trust

Rollover

I have a client who bought a farm in 2010 and rolled over a gain into this purchase. Therefore the base cost is considerably lower than the purchase price.

The client is now thinking about inheritance tax planning and we have discussed gifting this land to trust. Business tax relief should be available on the gift but I am more concerned about the capital gains tax position.

Ordinarily TCGA 1992 s 260 holdover relief can be claimed on a gift to trust. But is such holdover relief still available if an asset has already had a gain rolled into it meaning there should be no capital gains tax on the gift?

What do readers think?

Query 19 952 – Adviser.

TCGA 1992 s 260 relief is available.

In relation to the 2010 purchase of the client’s farm Adviser does not identify the section...