Tax Planning
Maximising UK CGT Reliefs: How the New Changes to Gifts of Business Assets Affect You
New UK rules on Capital Gains Tax reliefs for gifting business assets introduce stricter formulas starting 6 April 2027—key for succession planning, transfers of shares, or family business transitions.
By NomadicTax Research Team • 5-8 min read • July 14, 2026
## What’s Changing?
Starting **6 April 2027**, the UK is revising how **Gift Hold-Over Relief** for business assets operates. Under the new rules, assets that qualify under the **Substantial Shareholding Exemption (SSE)** or the **Intangible Fixed Assets (IFA)** regime will now be included in the formula used to cap the Relief. This reforms some previously beneficial treatment for certain shareholdings when some assets in a business aren't strictly ‘trading’ in nature. ([gov.uk](https://www.gov.uk/government/publications/capital-gains-tax-relief-on-gifts-of-business-assets/capital-gains-tax-relief-for-gifts-of-business-assets?utm_source=openai))
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## Who’s Affected 💡
- Individuals gifting shares in a **trading company** or its holding company, especially where the company qualifies under SSE or holds intangible assets.
- Those involved in **succession planning**, transferring business assets within family members.
- Shareholders of companies with mixed assets—some trading, some non-trading—since the restriction formula becomes more sensitive under the updated regime. ([gov.uk](https://www.gov.uk/government/publications/capital-gains-tax-relief-on-gifts-of-business-assets/capital-gains-tax-relief-for-gifts-of-business-assets?utm_source=openai))
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## Practical Examples
| Scenario | Before 6 April 2027 | From 6 April 2027 Onwards |
|----------|---------------------|------------------------------|
| You gift shares in your personal company; all assets are trading | Full relief under old formula; SSE or IFA had little effect. | Still generous relief—little difference since all assets trading. |
| Your company holds substantial intangible assets or mixed assets | SSE or IFA often excluded from restriction → more relief. | These excluded assets are now factored in—relief may reduce. |
| Family business transition with non-trading property mixed in | Greater chance that some assets were exempted before reducing restriction. | That exemption likely removed; plan for higher tax exposure. |
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## Actionable Insights
- Review your **holding company structure**: Determine whether SSE or IFA applies and what mix of trading vs non-trading assets you own.
- Evaluate timing: Asset transfers after 5 April 2027 will fall under the new formula. Consider early transfers if financially beneficial.
- Consult professional tax advice when doing significant gifting/transfers—complex rules and nuanced calculations.
- Keep detailed records of company accounts, asset classifications (trading vs non-trading), and any SSE/IFA eligibility.
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