Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Capital Gains Manual

Assets disposed of: series of transactions: groups of companies

TCGA92/S19 (5)

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.