303-760 Exceptions to the deemed market-value rule
There are three specific exceptions to the application of the deemed market-value rule.
Where immediately after the transaction the buyer company holds the property as a professional trustee, i.e. the company holds the property as trustee in the course of a business carried on by it which consists of or includes the management of trusts. It is advisable that neither the transferor nor any connected persons hold any shares or interests in the corporate trustee.
Transfer from settlor
Where immediately after the transaction the company holds the property as trustee and the seller is connected with the company solely by virtue of CTA 2010, s. 1122(6), i.e. in his capacity as settlor of the trust.