by Asim Abbas
12 November 2026 
Giving away business assets or shares? How Gift Hold-Over Relief works
Giving away business assets or shares? How Gift Hold-Over Relief works
Handing your business, premises or company shares to your children can trigger Capital Gains Tax, even though you receive no money. Gift Hold-Over Relief can pass that gain to the person receiving the gift instead.
- Gift Hold-Over Relief lets you avoid Capital Gains Tax when you give away certain business assets or shares.
- The person receiving them may pay the tax later, when they sell.
- Assets must be used in your business or personal company; shares must be in an unlisted or personal trading company.
- You and the recipient claim jointly, using HMRC helpsheet HS295.
- Selling at a discount can still leave part of the gain taxable.
The relief needs a joint claim, made at the right time, and selling to family at a discount brings special rules.
This guide explains who can claim, which assets qualify and how to claim.
What is Gift Hold-Over Relief?
According to GOV.UK, you can avoid Capital Gains Tax when you give away certain business assets or shares. The person you give them to may pay the tax later, when they sell or dispose of them. The gain is “held over” to them.
Separately, gifts to your husband, wife, civil partner or a charity are usually free of Capital Gains Tax anyway.
Which assets qualify?
Business assets
You must be a sole trader or partner, or hold at least 5% of the voting rights in a company (your “personal company”). The assets must be used in your business or personal company. If an asset was only partly used for business, you can usually get partial relief.
Shares
The company must either not be listed on a recognised stock exchange, or be your personal company. Its main activity must be trading, such as providing goods or services, not investment.
Check the gain first
Use our free Capital Gains Tax calculator to see the gain being held over.
Selling to family at a discount
If you sell an asset for less than it is worth to help the buyer, you may still owe tax on the gain you actually make. HMRC’s example: you sell a shop worth £81,000 to your brother for £40,000, and it cost you £23,000. You include a £17,000 gain (£40,000 − £23,000) in your taxable gains, and the rest can be held over.
How to claim
- you and the person receiving the gift must claim jointly
- complete the form in HMRC helpsheet HS295, Relief for gifts and similar transactions
- include it with your Self Assessment tax return, or upload a scanned copy if you file online
Fixed-fee accountancy support
Transparent monthly packages for sole traders, landlords and limited companies. Fixed fees agreed upfront, VAT included.
Get a fixed-fee quoteCall 0161 531 4179What happens when they sell?
The person who received the gift takes over your lower base cost, so when they sell, their gain includes the gain you held over. They should keep the claim and valuation records safely.
Other taxes to consider
Gift Hold-Over Relief only deals with Capital Gains Tax. Gifts can also have Inheritance Tax consequences, and giving away property may involve Stamp Duty Land Tax if there is a mortgage. Read our guide to Capital Gains Tax for businesses, or Business Asset Disposal Relief if you are selling rather than giving.
What should I do next?
Business use, personal company and trading status.
HMRC needs to know the value at the date of the gift.
The claim is made jointly.
We complete the claim and both tax returns.
Frequently Asked Questions
Who pays the tax with Gift Hold-Over Relief?
The person receiving the gift may pay it later, when they sell or dispose of the asset.
Can I use it for a buy-to-let property?
Generally not, because the asset must be used in your business or personal company. A buy-to-let held as an investment usually does not qualify.
Do both of us need to claim?
Yes. You and the recipient must claim jointly.
Which form do I use?
The form in HMRC helpsheet HS295, included with your Self Assessment return.
What if I sell to my child at a discount?
Any amount you receive above your cost is still a taxable gain; the rest of the gain may be held over.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Ali Imran
I’m Ali Imran, an accountant at Wingate Accountants. I help sole traders, landlords and directors get their returns filed early and accurately, without the last-minute panic.
