HMRC internal manual

Capital Gains Manual

CG14702 - Assets disposed of: series of transactions: groups of companies

TCGA92/S19 (6)

It would be possible for a group of companies to avoid TCGA92/S19 (1): one company could fragment assets and transfer them at no gain/no loss under TCGA92/S171 to other companies in the group before their disposal outside the group to a connected person or persons. Section 19(6) counters this kind of avoidance. We treat a disposal by a transferee company (A) as if it had been made by the original transferor company (B) for the purpose of determining whether Section 19(1) applies. If the application of Section 19(1) results in an increase in the consideration, this has effect in relation to the disposal made outside the group by the transferee company (A).