ExpertACCA · Question 23 · Chargeable gains for individuals
Section B - Case 2: Bramble Farms
Arthur owns Bramble Farms, a working agricultural estate. He decides to gift the entire estate to his daughter, Beatrice, during his lifetime. The estate includes agricultural land, a farmhouse occupied by Arthur, and various farm machinery.
Arthur realizes a capital gain on the gift of the agricultural land to Beatrice. Can Arthur and Beatrice jointly elect for CGT Gift Hold-Over Relief?
Section B - Case 2: Bramble Farms
Arthur owns Bramble Farms, a working agricultural estate. He decides to gift the entire estate to his daughter, Beatrice, during his lifetime. The estate includes agricultural land, a farmhouse occupied by Arthur, and various farm machinery.
Arthur realizes a capital gain on the gift of the agricultural land to Beatrice. Can Arthur and Beatrice jointly elect for CGT Gift Hold-Over Relief?
Answer options:
No, because hold-over relief is only available for gifts to trusts.
Yes, because the land is an asset used in Arthur's trade.
No, because the gift is a Potentially Exempt Transfer (PET) for IHT.
Yes, but only if Beatrice pays Arthur for the land.
How to approach this question
Full Answer
Common mistakes
Practice the full ACCA TX — Taxation Practice Exam 4
32 questions · hints · full answers · grading