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HMRC internal manual

Capital Gains Manual

Consideration for disposal: meaning of consideration

There is no definition of consideration in the Capital Gains Tax legislation. You should bear in mind that it is a technical legal term of some complexity. In cases governed by Scottish law, the word ‘consideration’ must bear its English meaning.

CONSIDERATION CAN BE ANY FORM OF VALUE RECEIVED. It can take the form of money’s worth as well as money. It includes the capitalised value of rights to receive income, see CG14504+. It also includes being given a non-assignable benefit or relief from liabilities.

Consideration can include:

  • sterling money
  • the value of any asset, other than sterling money, received in exchange for the asset disposed of
  • the capitalised value of the right to receive income or payments in the nature of income
  • the capitalised value of relief from liability, for example to pay maintenance or rent or to repay a loan
  • the capitalised value of the benefit of free or low-interest loans
  • the capitalised value of the benefit of rights to obtain goods or services free or at a discount.

Consideration - Money’s worth

There is no statutory definition of ‘money’s worth’ and so the words have their everyday meaning of worth, measured in money.