Readers’ forum: Are joint venture shareholdings chargeable assets?

Our query concerns the operation of TCGA 1992 s 165 gift holdover relief in the context of a gift of unquoted trading company shares.

Specifically our query relates to the application of TCGA 1992 Sch 7 para 7 which provides a restriction in the amount of capital gain that can be held over calculated as the fraction the company’s holding of non-business chargeable assets bears to its total chargeable assets.

Our company has three ‘investments’ comprising 50% shareholdings in three unquoted trading companies. Being less than 51% holdings these investments would on the face of it be non-business chargeable assets for the purpose of determining the para 7 restriction.

However on further research it has been established that these three investments are ‘qualifying joint venture’ shareholdings in terms of TCGA 1992 s 165A(7). It is our understanding that the presence of...