Taxation of Chargeable Gains Act 1992 section 30

Tax-free benefits

Section 30 deals with anti-avoidance rules that adjust the disposal consideration where a scheme or arrangement materially reduces the value of an asset and confers a tax-free benefit on specified persons.

• Where a scheme materially reduces an asset's value and confers a tax-free benefit on the person disposing of the asset, a connected person, or (if tax avoidance is a main purpose) any other person, the disposal consideration is increased by a just and reasonable amount for capital gains purposes.
• A benefit includes receiving money or money's worth, an increase in the value of an asset, or the reduction or cancellation of a liability — and it is "tax-free" if it does not have to be brought into account for income tax, capital gains tax or corporation tax when it arises.
• Where the tax-free benefit took the form of an increase in value of another asset, a compensating reduction is made to the disposal consideration of that other asset when it is subsequently disposed of, so that the same value is not taxed twice.
• The section does not apply for corporation tax purposes where a company disposes of shares or securities in another company (separate rules in section 31 cover that situation), and it does not apply to no-gain-no-loss disposals between spouses or civil partners, on death, or within a group of companies.