Max ceased trading two years ago, and is now about to move overseas. He would like advice on the capital gains tax (CGT) implications of the disposal of two assets previously used in his unincorporated business, and the inheritance tax (IHT) implications of gifting one of them.

Max:
– Has always been UK resident and domiciled.
– Is widowed and has one daughter, Fara.
– Is a higher-rate taxpayer.
– Makes disposals each year to use his annual exempt amount for capital gains tax.

Max – unincorporated business:
– Max operated as a sole trader for many years, but ceased trading on 31 May 2016.
– Max still owns office premises and a warehouse which had been used exclusively in his business until 31 May
2016.
– Max now wishes to dispose of these buildings prior to moving overseas.

Proposed gift of the office premises:
– Max is proposing to gift the office premises to Fara on 30 June 2018.
– Max acquired the premises on 1 April 2010.
– Since 1 June 2016, the premises have been let to an unconnected company.
– The market value of the premises in June 2018 is £168,000, which exceeds the original cost.

Required:
(a) In respect of the proposed gift of the office premises to Fara on 30 June 2018:
(i) Advise Max whether or not capital gains tax (CGT) gift relief will be available, and if so, to what extent.
(3 marks)