Taxation of Chargeable Gains Act 1992 section 259

Gifts to housing associations

Section 259 provides capital gains tax relief when land or property in the United Kingdom is gifted or transferred at below market value to a qualifying housing provider, ensuring that the transfer does not trigger an immediate tax charge for the donor.

• Where land is gifted or sold below market value to a relevant housing provider, the normal market value rule is disapplied, provided both the transferor and the housing provider make a joint claim for relief.
• If the transfer is a gift or for a consideration not exceeding the transferor's allowable costs, the disposal is treated as giving rise to neither a gain nor a loss, and the housing provider inherits the original owner's base cost and acquisition date.
• If the consideration exceeds the transferor's allowable costs but is still below market value, the gain is calculated using the actual consideration received rather than market value, and the housing provider's acquisition cost is that same actual consideration.
• Qualifying housing providers include non-profit registered providers of social housing in England, registered social landlords in Wales, registered bodies under the Housing (Scotland) Act 2010, and registered housing associations in Northern Ireland.