The conveyance or transfer by way of security of an asset and its re-transfer on redemption is not treated as an acquisition or disposal for the purposes of capital gains tax (TCGA 1992, s. 26(1)).

Where a person is entitled to an asset by way of security, charge or encumbrance and deals with the asset for the purpose of giving effect to the security, etc. he is treated for CGT as if he were acting as a nominee. This has the effect that the disposal is treated as if it were carried out by the beneficial owner (TCGA 1992, s. 26(2)).

Need help? Get subscribed!

To subscribe to this content, simply call 0800 231 5199

We can create a package that’s catered to your individual needs.

Or book a demo to see this product in action.