Taxation of Chargeable Gains Act 1992 Schedule 4B paragraph 5

Transfer of value linked with trustee borrowing

Section 5 of Schedule 4B establishes when a transfer of value by trustees is treated as linked with trustee borrowing, and how the amount of borrowing taken into account is determined.

• A transfer of value by trustees is treated as linked with trustee borrowing if there is outstanding trustee borrowing at the material time
• Outstanding trustee borrowing exists where a loan obligation remains unpaid and the borrowing proceeds have not been applied for normal trust purposes or already accounted for under an earlier transfer of value
• Trustee borrowing is "taken into account" when a transfer of value is treated as linked with that borrowing under the Schedule
• The amount taken into account is the lower of the value transferred and the amount of outstanding trustee borrowing at the material time