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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Close companies: transfers at undervalue: procedure

The District dealing with the company will agree the treatment of the transfer at undervalue. Therefore that District is responsible for advising Districts dealing with the shareholders that an adjustment under TCGA92/S125 may be due when the shares are sold. Follow up action can be confined to cases where the total amounts are significant, for example, where the total undervalue in any year exceeds £100,000.