Page 82 - P6 Slide - Taxation - Lecture Day 1

Disposals and donations not at arm’s-

length or to a connected person (par 38)

When a person disposes of an asset

• as a donation, or

• for a consideration not measurable in money, or

• to a connected person for a consideration not @

an arm’s-length price

then the disposal is treated as a disposal @ MV.

The person who acquires the asset is treated as

having acquired it for a base cost = market value.