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

HMRC internal manual

Capital Gains Manual

Gifts to employee trusts: computation of gains

TCGA92/S239 (2)

TCGA92/S239(2) disapplies the market value rule in TCGA92/S17.

If the assets are transferred for no consideration or for a consideration that is less than the costs allowable to the transferor under TCGA92/S38 the asset is treated as passing for such an amount that there is no gain and no loss. If the disposal is by a company that is within the charge to Corporation Tax the price may be increased by indexation. See TCGA92/S56 (2) and CG17400+.

If the consideration paid by the trustees is greater than the costs allowable to the transferor under TCGA92/S38 the effect of disapplying TCGA92/S17 is that the chargeable gain is computed by reference to the actual consideration given.