Page 23 - P6 Slide Taxation - Lecture Day 6 - Groups, Interest And Practice Questions

Implications: Tax relief provided

• In the hands of the transferor

• The transferor is deemed to have disposed of

a capital asset at base cost, and an allowance

asset or trading stock asset at tax value. The

tax effect is that the transferor does not

realise a recoupment, capital gain or trading

profit.

23