Close companies: introduction
These instructions deal with two sections which may affect the Capital Gains Tax treatmentof the disposal of shares in a close company. See CT6001 for instructions on thedefinition of close company.
- TCGA92/S124 reduces the gain on the disposal of shares if the shareholder has incurred a higher rate Income Tax liability on a close company apportionment.
- TCGA92/S125 decreases the Capital Gains Tax base cost of shares if a close company has transferred assets other than by way of a bargain made at arm’s length at undervalue.