A deemed disposal arises when a capital sum is received as consideration for the use or exploitation of assets, and the sum is derived (¶514-400) from those assets (TCGA 1992, s. 22(1)(d)).

In Pellipar Investments Ltd v Chaloner (HMIT) [1996] BTC 172, the High Court held that TCGA 1992, s. 22(1)(d) applied only to cases where title to the asset in question remained unaffected; it did not refer to capital sums received as consideration for the grant of the owner’s title, such as a lease or freehold title.

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