Tax Planning
Navigating Gift Hold-Over Relief: Succession Planning and Share Gifts Explained
Soon rules updating how much relief is allowable for gifts of business shares and securities will take effect—find out whether this helps or harms your family or company succession plans.
By NomadicTax Research Team • 5-8 min read • July 12, 2026
## What Is Gift Hold-Over Relief?
Gift Hold-Over Relief is a Capital Gains Tax (CGT) deferral for individuals who **gift business assets**, like shares or property used in a trade. Instead of paying CGT now, the gain is “held over” until the recipient disposes of the asset. This is often used in **succession planning** or when transferring business interests within families. ([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))
## What’s Changing From 6 April 2027
- The government will **include assets that qualify under the Substantial Shareholding Exemption** (SSE) and the Intangible Fixed Assets regime when calculating restrictions under Hold-Over Relief. Previously, these assets often escaped the restriction formula, leading to distortions. ([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))
- For disposals on or after **6 April 2027**, gifts of shares/securities under SSE or IFA that are not entirely trading assets will face stricter rules on how much relief can be claimed. ([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))
## Who Gets Affected—and How Greatly?
The changes hit hardest people who are planning to gift shares in their **personal companies**, or who hold unlisted shares or securities, especially where the company also holds **non-trading or intangible assets**. ([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)) Individuals gifting purely trading assets will see smaller detrimental impact; those with mixed or intangible heavy portfolios will find Hold-Over Relief **less generous**. ([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))
## Planning Tips & Practical Examples
- **Family business:** Sarah owns a UK startup with trading operations plus some real-estate she rents out. If she gifts shares to her children after 6 April 2027, the presence of non-trading property will reduce the relief—so transferring pure trading shares first may reduce tax.
- **Intangible assets:** John holds IP rights within his company. Under the new rules, these will be treated more strictly when calculating relief, so gifts involving intangible fixed assets might incur more upfront CGT than in the past.
## Actionable Insights
- **Audit your asset mix** now: separate trading vs non-trading and intangible components.
- **Consider gifting or restructuring before 6 April 2027**, where relief is more generous under current rules.
- **Work with tax professionals** to run simulations using your specific asset composition.
- **Ensure claim procedures are correctly followed**, given that changes may also affect timing, claim formats, and eligibility. ([gov.uk](https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/updates?utm_source=openai))
## Big Picture Takeaway
If you’re planning gifts of business assets—especially shares or securities involving non-trading or intangible assets—this legislative reform could change your tax bill significantly. Early planning, knowing your asset structure, and acting before the new restrictions take hold will be key to preserving your tax reliefs.