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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Consideration for disposal: market value rule: not at arm's length

TCGA92/S17 (1) (a)

It is important to recognise when a transaction is ‘otherwise than by way of a bargain made at arm’s length’. This is because for a transaction carried out ‘otherwise than by way of a bargain made at arm’s length’ the market value of the asset should be used as the consideration for the disposal, and/or as the acquisition cost in the computation, instead of the actual disposal proceeds or amount paid (but see CG14550 where there is an acquisition with no corresponding disposal).