Just before the signature boxes the form says “I/We apply for deferment of valuations and have completed the second page of the claim form.”
What if you do not wish to claim deferment of valuations because the market value has been agreed via the CG34 procedure? SP8/92 para 8 indicates that completing the second page is optional. Use of the form is compulsory so should the sentence quoted above be simply crossed out before the transferor signs page 1 (it is a disposal into trust)?
HS295 Relief for gifts and similar transactions (2022) - GOV.UK (www.gov.uk)
Relief for gifts and similar transactions (publishing.service.gov.uk)
Dear Jack,
On page 1 of the form, towards the bottom, it asks for confirmation of the gain heldover and gives a tick box to allow for a computation to be attached. You can submit, with the calculation, the agreement received and/or make a note on the computation referencing the agreement.
Page 2 is optional and only needs to be completed if you want to claim the deferral.
These forms are often not reviewed, as the tax issue really only hits when the disposal of the asset occurs and then the valuation will be irrelevant, as long as the original cost figure is used.
I hope this helps.
Lucy Orrow CTA TEP
Lambert Chapman LLP
Lucy, the background is that subject to what the gain is agreed with HMRC to be (not just market value but base cost derived from complex prior share reorganisations) the plan is not necessarily to claim relief at all but perhaps to pay the tax as that will be an additional IHT-free gift without a 7 year wait on top of the gift of £325k of shares. And CGT rates on future disposals by the donee trustees, with a change of Government possible, are likely to be less favourable.
You have made me look more closely at the form and I can now see that I missed the second tick box, under that for attaching a calculation, as it seems to me at least to be misaligned. So all we need to do is omit to tick it if we want a valuation now but leave open the claim until the return deadline. Thank you.
Jack Harper