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HMRC internal manual

Capital Gains Manual

TCGA92/Sch4B - "the material time"


The transfer of value will be made at the material time. This is defined in TCGA92/Sch4B/para2(2) as:

  • for a loan when the loan was made
  • for the transfer of an asset when the transfer was effectively completed
  • for the issue of a security when the security was issued.

Effective completion means when, for practical purposes, the person acquiring the asset becomes entitled to what is being transferred to them. For example, if the trustees appoint cash to a beneficiary “effective completion” means when the funds are in the beneficiary’s bank account.

The concept of the material time is important for two reasons:

  • the test whether the transfer of value is linked with trustee borrowing at the material time, TCGA92/Sch4B/para5.
  • the deemed disposal of the assets remaining in the settlement occurs at the material time, TCGA92/Sch4B/para10.