Taxation of Chargeable Gains Act 1992 Schedule 4B paragraph 10

Deemed disposal of remaining chargeable assets

Paragraph 10 of Schedule 4B deals with the deemed disposal and reacquisition of chargeable assets held by trustees when a transfer of value is linked with trustee borrowing.

• Where a transfer of value by trustees is linked with trustee borrowing, the trustees are treated as having disposed of and immediately reacquired the whole or a proportion of each chargeable asset remaining in the settled property immediately after the material time.
• The deemed disposal and reacquisition is treated as being for a consideration equal to the whole or a proportion of the market value of each asset, and as a bargain at arm's length.
• An asset is a chargeable asset if a gain arising on its disposal by the trustees at the material time would be a chargeable gain.
• The proportion of each asset deemed to be disposed of is determined by paragraph 11 of Schedule 4B.