Taxation of Chargeable Gains Act 1992 Schedule 4B paragraph 4

Trustee borrowing

Section 4 of Schedule 4B defines what counts as borrowing by trustees for the purposes of the Schedule, and how the amount borrowed is to be calculated.

• Trustees are treated as borrowing if money or any other asset is lent to them, or if an asset is transferred to them and they take on an obligation to return or transfer that or any other asset to any person.
• The amount borrowed (the "proceeds") is the market value of the asset lent, or in the case of a transfer, the market value less any consideration received.
• Market value is measured immediately before the loan is made or the transfer is effectively completed, unless the asset did not exist before that point, in which case the value immediately afterwards is used.
• The term "loan obligation" used throughout the Schedule includes not only straightforward loan repayment obligations but also any contractual obligation arising from a transfer arrangement to return or hand over assets.