Corporation Tax Act 2009 section 828

Relief on transfer

Section 828 explains how the postponement of a tax charge under section 827 works in practice, by reducing the proceeds of realisation of a relevant asset where securities have been received as consideration for a transfer.

• Where the proceeds from realising a relevant asset exceed its cost as recognised for tax purposes, those proceeds are treated as reduced
• If the securities received make up the entire consideration for the transfer, the proceeds are reduced by the full amount of the excess
• If the securities are only part of the consideration, the reduction is limited to a proportionate share of the excess
• The proportionate share is calculated by comparing the market value of the securities at the time of transfer to the market value of the total consideration at that time