The following Tax practice note provides comprehensive and up to date legal information covering:
The value shifting rules are anti-avoidance provisions. They are similar to the rules applying to depreciatory transactions in that they target the artificial transfer of value out of assets as a result of transactions between connected parties. The value shifting rules, however, apply more widely.
Unlike the depreciatory transaction rules, they:
do not always require an actual disposal. The rules instead impose a tax charge at the time of the value shifting transaction by deeming the asset to have been disposed
can convert losses into gains and increase gains realised on a disposal (whether actual or deemed), and
are applied at the level of the asset itself. There is, therefore, no need to prove a material reduction in the value of the asset holding company's shares for the rule to be applied
The two sets of rules should, however, always be considered together.
For a discussion of the anti-avoidance provisions applying to depreciatory transactions, see Practice Note: Depreciatory transactions and dividend stripping.
Without these anti-avoidance provisions, it would be possible for value to be shifted (from one asset to another) or extracted in some way without triggering a tax charge on the value shifted or extracted. This could result in allowable losses being artificially inflated or chargeable gains artificially reduced when there is a disposal of the asset whose value has been artificially reduced.
There are two value
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
Unlike many other countries, the UK has no unfair competition law. Brand owners seeking to prevent competitors from marketing ‘copycat’ products or using misleading advertising have to rely on a combination of different intellectual property rights. These rights include the common law right to
The Public Private Partnership (PPP) models are a popular way for governments to involve private investment, expertise and risk in procuring infrastructure, with the potential to deliver a project more efficiently and economically. One of the most popular PPP models for procuring infrastructure
On the disposition of a property (whether by way of conveyance, transfer or charge), the party making the disposition will normally provide a title guarantee which implies standard form covenants for title. A landlord may give a title guarantee when granting a lease, but this is rare in practice.
Broadly, the doctrine of overreaching enables purchasers (which includes tenants and mortgagees) in good faith for money or money’s worth to rely solely on the legal title. In the case of registered land, this means the entries entered on the register of title, as it records ownership of the legal
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.