CG54608 - Deep discount securities: no gain, no loss transactions
Section 118(4) of the Taxation of Chargeable Gains Act (TCGA) 1992
Other transactions which may be liable to Income Tax but not Capital Gains Tax are transfers made on a no gain, no loss basis. For example, disposals between spouses or between civil partners, section 58 TCGA 1992, and disposals between members of the same group of companies, section 171 TCGA 1992.
For Capital Gains Tax purposes the transferee's acquisition cost should be increased by the amount of the accrued income charged under the deep discount security legislation, section 118(4) TCGA 1992.