Chapter CG38920
| Published date | 12 March 2016 |
| Record Number | CG38920 |
| Court | HM Revenue & Customs |
| Issuer | HM Revenue & Customs |
If TCGA92/S90 applies the first step is to carry out the section TCGA92/S87A matching in the transferor settlement for the year of transfer. See CG38960. Any gain accruing on the transfer itself is included in the section 2(2)* amount for the year of transfer and is included in this matching. It is only the unmatched section 2(2)* amounts remaining that may be transferred to the transferee settlement, TCGA92/S90(3).
The value of unmatched section 2(2)* amounts transferred depends on whether all or only part of the settled property is transferred and what consideration, if any, is given for the transfer.
All the settled property is transferred for nil consideration
Only part of the settled property is transferred for nil consideration
All or part of the settled property is transferred for a consideration equal to or greater than market value
All the settled property is transferred for a consideration less than market value
Only part of the settled property is transferred for consideration less than its market value
All the unmatched section 2(2)* amounts of the transferor settlement are added to the section 2(2)* amounts of the transferee settlement, TCGA92/S90(3)(a).
The unmatched section 2(2)* amounts of the transferor settlement are reduced to nil, TCGA92/S90(5).
See the example in CG38930.
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Only part of the settled property is transferred for nil considerationOnly the ‘relevant proportion’ of the unmatched section 2(2)* amounts of the transferor settlement is added to the section 2(2)* amounts of the transferee settlement, TCGA92/S90(3)(b). The relevant proportion transferred is ‘the market value of the property transferred’ divided by ‘the market value of the property comprised in the transferor settlement immediately before the transfer’, TCGA92/S90(4).
The unmatched section 2(2)* amounts of the transferor settlement are reduced by the same amount, TCGA92/S90(5).
See the example in CG38935.
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All or part of the settled property is transferred for a consideration equal to or greater than market valueNo unmatched section 2(2)* amounts of the transferor settlement are added to the section 2(2)* amounts of the transferee settlement. The unmatched section 2(2)* amounts of the transferor settlement remain in the transferor settlement, TCGA92/S90A(1).
See the example in CG38940.
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All the settled property is transferred for a consideration less than market...To continue reading
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