Taxation of Chargeable Gains Act 1992 Schedule 4B paragraph 2

Transfers of value

Paragraph 2 of Schedule 4B defines what constitutes a "transfer of value" by settlement trustees, establishes the concept of "the material time", and sets out how the amount of value transferred is calculated in each case.

• Trustees make a transfer of value when they lend an asset, transfer an asset for less than market value, or issue a security for less than its value
• The "material time" is the point when the loan is made, the transfer is effectively completed (i.e. the recipient becomes unconditionally entitled to the asset), or the security is issued
• For loans the value transferred is the full market value of the asset; for transfers it is the market value (reduced by any consideration received, unless any part of the asset's value is attributable to trustee borrowing); and for securities it is the value of the security less any consideration received
• Asset values are measured immediately before the material time, or immediately after if the asset did not exist before that time