BTC - gift relief

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I am struggling to remember how gift relief works, and the best way to describe it and wondered if anyone was having the same difficulty and if anyone has any tips of how to remember it easily and the calculations.

Thanks

mysteryukc

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:BTC - gift relief

    Gift relief is a way of deferring a gain on an asset which would arise on the transfer of an asset (rather than the sale).

    In effect, the gain (or a proportion of this gain) is passed on to the person receiving the gift.

    The gain is deferred by a reduction in the 'cost' for the person receiving the gift. This means that when they then sell it on, the cost is lower than previuosly, so the gain is therfore higher, so they are taxed on a larger gain whilst the person who made the gift will not pay tax on their gain if they defer all of their gain

    I hope this helps

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