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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Assets disposed of: series of transactions: introduction

The object of TCGA92/S19 is to ensure that connected persons do not exploit the market value rule by transferring singly in a series of transactions assets which are worth more together than separately. For example, Mrs A may wish to transfer to her daughter a Chippendale dining table and chairs. The items singly are worth much less than their appropriate portion of the value of all of them together. If she makes a series of gifts of individual items, the rules in TCGA92/S17 and TCGA92/S18 would bring in only the market value of the single items as consideration. TCGA92/S19 enables us to look at the higher value of each piece taken together with the others.

For the restriction to the chattels exemption when a set of articles is disposed of piece by piece, see CG76631+.

TCGA92/S19 and TCGA92/S20 apply where

  1. a person disposes of assets to a connected person or persons by way of two or more gifts or other transactions AND
  2. those transactions occur within a period of 6 years ending on the date of the last of them - they are said to form ‘a series of linked transactions’ AND
  3. the ‘original market value’ of the assets disposed of is less than the ‘appropriate portion of the aggregate market value’ of the assets disposed of by all the transactions in the series, see CG14653 for definitions.