CG14545 - Consideration for disposal: market value rule: objective indicators

The test which must be satisfied is subjective: the test is whether there was an intention to confer a gratuitous benefit or ‘give bounty’. There are objective pointers which may indicate the underlying intention. The following list (which is not exhaustive) suggests information which you may need to consider:

• the presence or absence of real negotiations between the parties about the terms of the transaction
• how the terms of the transaction compare with those in similar commercial transactions
• whether the parties have separate legal or other professional representation
• whether the parties have received independent advice
• the character of any comparable prior dealings between the parties
• whether the transaction between the parties may be linked with any other transaction between the same parties
• the relationship between the parties outside the transaction in question.

It is important to consider all of the available evidence.