83 Exemption where disposition was made by the donee or successor

Summary

Where a donee or successor takes a gift or inheritance under a disposition made by himself/herself, no charge to tax will arise. This principle also applies to holding companies and their subsidiaries.

Details

(1) “company” means a body corporate (wherever incorporated) other than a private company within the meaning of section 27.

(2) A gift or an inheritance taken by a donee or successor under a disposition made by that donee or successor is exempt from capital acquisitions tax.

(3) Where, at the date of the gift, 2 companies are associated in the manner described in subsection (4), a gift taken by one of them under a disposition made by the other will be exempt from capital acquisitions tax.

(4) 2 companies will be regarded as associated for the purposes of subsection (3) if:

• one company would be beneficially entitled to not less than 90% of any assets of the other company available for distribution to the owners of its shares and entitlements of the kind referred to in section 43(2) on a winding up, or
• a third company would be beneficially entitled to not less than 90% of the assets available for distribution and belonging to each of the other 2 companies concerned.

Relevant Date: Finance Act 2015