Commentary

C2.120 The open market hypothesis

Capital gains tax
Capital gains tax | Commentary

C2.120 The open market hypothesis

Capital gains tax | Commentary

Determination of market value

C2.120 The open market hypothesis

Where the consideration for the disposal or deemed disposal of an asset is taken as the market value of the asset, the market value must be determined as the price which the asset might reasonably be expected to fetch on a sale in the open market1. Presumably this is as between a willing seller and a willing buyer bargaining on equal terms and at arm's length, so that the price given or received would represent a fair and true price for the asset. HMRC do not, therefore, accept arguments that the market value should be increased because the vendor would only have sold the asset for a sum substantially in excess of the true value of the asset. HMRC do, however, consider that

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