CGT - Connected Persons and Inter-Spouse Transfers

Question 1

Connected Persons

Persons ‘Connected’ for CGT Purposes Include:

Section 286 TCGA 1992.

Answer 1

• Spouses;
• Relatives;
• A Company They Control;
• Fellow Business Partners and Their Relatives.

Question 2

Transactions With Connected Persons

All Transactions Between ‘Connected Persons’ Take Place at:

Answer 2

Market Value for CGT Purposes.

Anti-Avoidance Provision

Question 3

Losses on Disposals to Connected Persons

Losses Arising Can Only be Offset Against:

Answer 3

Gains on Future Disposals to the Same Connected Person.

Anti-Avoidance Provision

Question 4

Inter-Spouse Transfers - The ‘No Gain, No Loss’ Rule

Assets Transferred Between Spouses are Deemed to be Disposed at:

Answer 4

‘No Gain, No Loss’.

Deemed Proceeds for Donor = Cost = Deemed Cost for Donee.