As seen at 7.2.6, certain disposals are treated as taking place for a consideration equal to the market value of the property in question, rather than the actual consideration received. The same market value is generally also used for the acquisition cost of the person acquiring the property.


This rule generally applies to substitute market value in place of any actual proceeds of disposal in connection with the following types of transactions:

(a)gifts and other transactions not at arm’s length (TCGA 1992, s. 17);

(b)distributions of company and trust assets (TCGA 1992, s. 17);

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