Assets disposed of: series of transactions: groups of companies
TCGA92/S19 was not intended to apply to straightforward ‘intra-group’ transfers so the provisions of Section 19 are disapplied where the transaction is a disposal between fellow group members within the meaning of TCGA92/S171, see CG45300+.
However, groups of companies could exploit Section 19(5) in two ways:
- they could assemble assets in one group member by a series of ‘intra-group’ transfers and then sell them to a connected person or persons outside the group, see TCGA92/S20 (6) and (7) and CG14701.
- one group member could fragment assets by transfer to other group members before their disposal outside the group to a connected person or persons, see TCGA92/S19 (6) and CG14702.