Commentary

C1.311 Disposals by way of gift

Capital gains tax
Capital gains tax | Commentary

C1.311 Disposals by way of gift

Capital gains tax | Commentary

C1.311 Disposals by way of gift

A gift of assets is a disposal1. Gains or losses are computed by deeming the consideration to be the market value of the assets at the time of disposal2. However, no chargeable gain (or allowable loss) arises in respect of a disposal by way of donatio mortis causa3. Disposals under transactions other than by way of a bargain at arm's length, which automatically includes any disposal and acquisition between connected persons4, are dealt with in the same way, regardless of actual consideration passing5.

With respect to gifts made after 5 April 1980 and before 14 March 1989 the donor and donee could jointly elect that the

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