Taxation of Chargeable Gains Act 1992 section 90A

Section 90: transfers made for consideration in money or money's worth

Section 90A modifies the inter-settlement transfer rules in section 90 where the transfer of settled property is made in return for consideration in money or money's worth.

• Where settled property is transferred between settlements for consideration equal to or exceeding the market value of the property, section 90 (which moves trust gains between settlements) does not apply at all.
• Where the consideration received is less than the market value, section 90 still applies but only to the extent of the shortfall — the element not covered by the consideration.
• If the entire settled property is transferred at undervalue, the transfer is treated for section 90 purposes as a transfer of part only of the settled property, not the whole.
• The consideration received is deducted from the market value figure used in the section 90(4)(a) calculation, so that only the unbought portion of the value carries the trust gains across to the receiving settlement.