If the asset is an outright gift, or if the consideration you’ve received is less than your base cost, the disposal is treated as being at such a price that there’s no chargeable gain or allowable loss. For simultaneous searches at multiple locations, the justification for searching each location without prior judicial approval should be considered in relation to each location separately. For simultaneous searches of multiple persons, the justification for searching each person without prior judicial approval should be considered separately. However, there may be an overarching justification underlying the decision to conduct the searches, for example, to prevent the destruction of evidence at other locations owned by the same person; or in the case of a group of persons suspected of a common enterprise. In such cases, one report might be more appropriate. However, the justification for searching each location or each person without prior judicial approval should be set out separately. If there is no thread of common justification relating to the searches, separate reports would be more appropriate. Where SP8/92 applies, the claim is admitted on the condition that the provisional values submitted with the claim are left to be agreed. They should be agreed at a later date between the claimants and HMRC, when and if it becomes relevant to the calculation as a result of further disposal by either claimant. The code should be made available for reference by officers using the powers, and for members of the public. It should be available in particular at police premises and at ports where the powers are, or are likely, to be used. Government departments and other bodies who have AFIs operating these powers should also make arrangements for the code to be available, if practical, at their public offices. This relief covers works of art, historic houses and other property of sufficient standard to be regarded as part of the national heritage. There are reliefs for both CGT and Inheritance Tax. Exemption from CGT may be available for certain transactions for designated property. Find out more in the Inheritance Tax Manual. Tax instalments where there’s liability on a gift

In certain circumstances the tax becomes payable immediately if the donee disposes of the asset. Relief that can be claimed for Inheritance Tax paid on a gift If the officer has reasonable grounds for suspecting that relevant cash is on premises, the officer should take the following steps: the officer has reasonable grounds for suspecting that a person is carrying cash which satisfies the conditions in paragraph 19 (see section 289(2)). If it is not practical to seek prior judicial approval, appropriate approval may be given by a “senior officer”. A “senior officer” is:The officer should take special care and have particular regard to an individual’s vulnerabilities and possible difficulties when conducting a search. This is particularly relevant in the case of a search of a person who is a juvenile or persons with a mental or physical disability.

The powers conferred are civil in nature and exercisable only so far as is reasonably required for the purposes of finding relevant cash. In relation to vehicles being searched under section 289(1D), the officer may require the suspect to permit entry to the vehicle and permit a search of the vehicle, and in relation to a person suspected of carrying cash, the officer may require the person to permit a search of any article they have with them as well as permit a search of their person. [footnote 16] This search power under section 289 does not extend to requiring a person to undergo an intimate search or strip search. [footnote 28] An intimate search is one involving a physical (and not just a visual) examination of a person’s body orifices. A strip search is any search that is not an intimate search but involves the removal of an article of clothing that: Where the liability arises because you received some consideration from the person to whom you transferred the asset, liability is restricted. As long as the base cost represents actual expenditure and is not a value, in particular a value at 31 March 1982, it is not necessary to agree the value at the date of disposal.

Changes to legislation:

at any time in the previous 12 months the trustees making the disposal had at least 25% of the voting rights the officer is on any private premises and has lawful authority to be present (for example when a constable is exercising his powers of entry under PACE or when an officer of Revenue and Customs is exercising such powers under CEMA), and has reasonable grounds for suspecting that there is on the premises cash which satisfies the conditions in paragraph 19. The power to search premises includes the power to search a vehicle located on those premises [footnote 11] (see section 289(1D)); This section applies to gifts to UK charities and certain bodies such as the National Gallery, local authority-maintained art galleries and museums, local authorities and universities. A full list is in Schedule 3 Inheritance Tax Act 1984. The basic rule is that the relief is available only where the transfer is made by an individual or the trustees of a settlement to an individual or the trustees of a settlement. any explanation given by the person as to the ownership, origins, purpose and destination of any relevant cash found;

The held-over gain is restricted by reference to non-business assets of the company which would give rise to a chargeable gain (or allowable loss) if sold, where either the: explain to the judicial officer the reasonable grounds for suspicion that they have for undertaking the search; a beneficiary with an interest in possession in the settled property immediately before the disposal A refusal to permit a search may in some instances constitute an offence (including but not limited to) wilful obstruction of an officer in the execution of a duty or exercise of a power. [footnote 24] This would be a criminal matter and is not an issue for, or subject to, this code. Officers should be aware of other legislation and codes applicable in these circumstances. the officer should ask the person to confirm or deny whether they have relevant cash on their person;a member of a trading group whose holding company is your personal company (see the section the different types of companies) Reasonable suspicion should normally be linked to accurate and current intelligence or information. It can sometimes exist without specific information or intelligence and on the basis of some level of generalisation stemming from the behaviour of a person. However, reasonable suspicion cannot be founded retrospectively. Approval to search for cash the officer should allow the person the opportunity to produce and hand over the relevant cash, and Before seeking consent the officer in charge of the search should explain to the person the purpose of the proposed search and its extent. This information should be as specific as possible. The person concerned should be clearly informed and should clearly understand that they are not obliged to give consent and that any consent given can be withdrawn at any time, including before the search starts or while it is underway. The officer should record what information they provided to the person, together with any responses, in writing. This means that unless an appropriate officer has information or intelligence which provides a description of a person suspected of carrying property, the following cannot be used, alone or in combination with each other, or in combination with any other factor, as the reason for searching any individual, including any vehicle:

in relation to a search undertaken by an AFI, a member of the civilian staff of a police force in England and Wales (including the metropolitan police force), a member of staff of the City of London police force, or a member of staff of the Police Service of Northern Ireland, a senior police officer; [footnote 22] Hold-over Relief is available on the disposal of a business asset. This is an asset which is used for the purposes of a trade, profession or vocation, carried on by: Some transactions that are disposals for CGT purposes are specifically not chargeable transfers for Inheritance Tax. Examples are distributions within 2 years of death from a discretionary trust set up by a will or within 3 months of the start of the trust, or transfers within 3 months of a 10-yearly charge. In such cases, Hold-over Relief is not available. Category 5 Certain occasions exempted from Inheritance TaxFollowing submission of the written report, the officer should also submit any supplementary information which the “appointed person” reasonably requires the officer to submit, within 14 days of the request for the supplementary information. The officer should co- operate, facilitate and assist the “appointed person”, wherever possible, so that the “appointed person” can effectively discharge their role and responsibilities. The most important examples of cases exempt from Inheritance Tax, where Hold-over Relief is available, are transfers from: A gift of a Qualifying Corporate Bond (that you received in exchange for shares), is deemed as a disposal which gives rise to a chargeable gain by reference to the original shares (see Helpsheet 285 Capital Gains Tax, share reorganisations and company takeovers). This gain cannot be held-over. The transferee can claim the Inheritance Tax on the gift as a deduction in calculating the chargeable gain, but not to turn it into an allowable loss, provided that it was a disposal that was a chargeable transfer. Relief is not available in respect of the Inheritance Tax arising on the occasion of death. If an officer is carrying out additional and separate functions or powers, the officer should have regard to any connected code in relation to the exercise of those functions or powers.