扒哥吃瓜

Section 19(5) of the Taxation of Chargeable Gains Act (TCGA) 1992

was not intended to apply to straightforward 'intra-group' transfers so the provisions of are disapplied where the transaction is a disposal between fellow group members within the meaning of , see CG45300P.

However, groups of companies could exploit in two ways:

• they could assemble assets in one group member by a series of 'intra-group' transfers and then sell them to a connected person or persons outside the group, see .
• one group member could fragment assets by transfer to other group members before their disposal outside the group to a connected person or persons, see .

Section 20(6) and (7) TCGA 1992

To prevent the exploitation of the rules in CG14680 where the provisions apply to a disposal which is not an 'intra-group' transfer

• the first bullet of CG14680 does not apply to acquisitions from fellow group members and
• for the purposes of the second bullet of CG14680, any disposal by way of an intra-group transfer before the first transaction in the series of linked transactions is assumed to have been made after that transaction.

Section 19(6) TCGA 1992

It would be possible for a group of companies to avoid : one company could fragment assets and transfer them at no gain/no loss under to other companies in the group before their disposal outside the group to a connected person or persons. counters this kind of avoidance. We treat a disposal by a transferee company (A) as if it had been made by the original transferor company (B) for the purpose of determining whether applies. If the application of results in an increase in the consideration, this has effect in relation to the disposal made outside the group by the transferee company (A).