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HMRC internal manual

Capital Gains Manual

Value shifting: introduction

As explained in CG13200+ it is possible to manipulate the value of assets such as shares so that value passes from one holding to another. Without special rules a transfer of value from one holding to a holding owned by another person would not be a disposal for Capital Gains Tax purposes. The value shifting rules in TCGA92/S29 were introduced to counter such avoidance.

This guidance deals with TCGA92/S29 (2) and (3) which apply specifically to share transactions. Section 29 also applies to transfers of value from assets other than shares.

This section of guidance (CG58550+) does not deal with TCGA92/S30 which is is also referred to as a “value shifting” rule. Section 30 applies to adjust disposal consideration where a scheme or arrangements

  • materially reduces the value of an asset


  • gives rise to a tax-free benefit.

Section 30 can apply to any disposal including a deemed disposal under Section 29. General guidance on Section 30 is at CG13260+.

For disposals of shares in a company by another in the same group before 19th July 2011, Section 30 was subject to TCGA92/S31-TCGA92/S34, see CG46800+. A new Targeted Anti-Avoidance Rule I TCGA92/S31 applies to disposals by companies of any shares or securities on or after 19th July, see CG48500+.