Taxes Consolidation Act 1997 section 543

Transfers of value derived from assets

Section 543 provides that certain transfers of value or valuable rights from one person to another are treated as disposals for capital gains tax purposes, even where no consideration is involved.

• Where a person controlling a company shifts value from their own shares (or those of connected persons) into other shares in the company, this is treated as a deemed disposal at market value of the shares from which value has passed.
• Where the former owner of property has become the lessee and the lease terms are subsequently adjusted in favour of the lessor, the lessee is treated as having made a disposal of an interest in the property.
• Where a person who is entitled to enforce a right or restriction over an asset extinguishes or gives up that right, this is treated as a disposal of the right at market value.
• In all three cases, where no consideration is given or the consideration is less than market value, the transaction is treated as made at market value as if the parties were at arm's length.