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Badr on % FHL gifted to children

Answer
Carol Fletcher
Posted Tue, 08 Oct 2024 22:24:22 GMT by Carol Fletcher
Parents are gifting 48% of a FHL to their children. Can they pay the BADR as they dont want to use gift hold over relief. Is that possible? Is then the gifted amount for the children MV at that date for future CGT calls?
Answer
HMRC Admin 20 Response
Posted Fri, 18 Oct 2024 09:12:24 GMT by HMRC Admin 20 Response
Hi, 
Provided it qualifies for BADR per
CG63975 - Business Asset Disposal Relief: qualifying disposals by individual
then yes you can do that.  
The disposal cost would be the MV at that date, which would be the acquisition cost for the children.
Thank you.

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