Taxation of Chargeable Gains Act 1992 Schedule 4B paragraph 10

Whether deemed disposal is of whole or a proportion of the assets

Section 10 of Schedule 4B determines whether the deemed disposal and reacquisition triggered by a transfer of value covers all of the remaining chargeable assets or only a proportionate share of each.

• Where the value transferred is less than both the outstanding trustee borrowing and the effective value of the remaining chargeable assets, only a proportion of each asset is deemed disposed of, calculated as the value transferred divided by the effective value of those assets.
• Where the value transferred equals or exceeds the outstanding trustee borrowing but is still less than the effective value of the remaining chargeable assets, the proportion deemed disposed of is the outstanding trustee borrowing divided by the effective value of those assets.
• In all other cases — that is, where the value transferred equals or exceeds the effective value of the remaining chargeable assets — the deemed disposal covers the whole of each remaining chargeable asset.
• The effective value of the remaining chargeable assets is their aggregate market value reduced by the portion attributable to trustee borrowing, and all amounts (other than the value transferred itself) are measured immediately after the material time.