Taxation of Chargeable Gains Act 1992 Schedule 11 paragraph 2

Gifts and transactions between connected persons before 20th March 1985

Schedule 11 paragraph 2 deals with how market value is determined for gifts and transactions between connected persons that took place before 20 March 1985, including transitional rules where transactions straddle that date.

• For transactions before 20 March 1985, section 19 (series of transactions rules) does not apply; instead, the earlier rule under section 151 of the 1979 Act is used
• Where a person receives assets from connected persons through two or more gifts or transactions, and the combined market value exceeds the sum of the individual values, the higher aggregate value must be used and apportioned rateably across each disposal
• Where transactions straddle 20 March 1985, those on or before that date (and within two years before the first post-date transaction) are treated as material transactions for the purposes of section 19
• This paragraph preserves the effect of the former anti-avoidance rule that prevented connected persons from fragmenting disposals to achieve lower market valuations