586. Excluded transactions.

For the purposes of the disposal condition1, the disposal of any property2 is an 'excluded transaction' in relation to any chargeable person3 if:

  1.  

    (1)     it was a disposal of his whole interest in the property, except for any right expressly reserved by him over the property, either by a transaction made at arm's length with a person not connected with him, or by a transaction such as might be expected to be made at arm's length between persons not connected with each other4;

  2.  

    (2)     the property was transferred to his spouse or civil partner (or, where the transfer has