Taxation of Chargeable Gains Act 1992 Schedule 1A paragraph 6

Exception for certain disposals of rights or interests under same arrangements etc

Section Schedule 1A paragraph 6 provides an exception that prevents linked disposals of rights or interests in companies from being treated as disposals of UK land-rich assets, where the companies' assets, if combined, would not meet the 75% UK land value threshold.

• Where two or more linked disposals of company rights or interests occur and only some would individually meet the 75% UK land value test, but the companies' combined assets would not, none of the disposals are treated as UK land-rich
• Disposals are considered "linked" if they are made under the same arrangements, between the same or connected persons, and each seller is connected with the company whose rights or interests are being disposed of
• When testing whether the combined assets would breach the 75% threshold, each company involved is assumed to be a related party of the others for valuation purposes
• Whether persons are connected with each other is determined immediately before the arrangements are entered into, and the normal partnership exclusion for connected persons does not apply