Commentary

C1.508 CGT losses—Disposals to connected persons

Capital gains tax
Capital gains tax | Commentary

C1.508 CGT losses—Disposals to connected persons

Capital gains tax | Commentary

C1.508 CGT losses—Disposals to connected persons

The consideration for disposal of an asset by a person to another person connected with him is deemed to be the open market value of the asset and any gain or loss is computed accordingly1. In these circumstances, any allowable loss accruing on the disposal can be set off only against chargeable gains on other disposals to the same person at a time when the transferor and the transferee are still connected persons2. There is an exception for gifts in settlement where the gift and any income arising from it are wholly or primarily

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