VCM74090 - Share Loss Relief: individual and corporate claimants: individual claimants: disposals and deemed disposals
One of the cardinal preconditions for Share Loss Relief is that shares be disposed of. The most obvious form of disposal is a sale for money or other consideration, but for the purposes of TCGA 1992 other events are also treated as disposals and can give rise to chargeable gains or allowable losses, and some (but not all) of these other events are also disposals for Share Loss Relief purposes.
The arm바카라 사이트™s length requirement
Where other parties are involved, the disposal must be by way of a bargain at arm바카라 사이트™s length. There is no statutory definition of a 바카라 사이트˜bargain made at arm바카라 사이트™s length바카라 사이트™ (also known as an 바카라 사이트˜arm바카라 사이트™s length bargain바카라 사이트™). In the context of a disposal, it does not mean that any consideration given must be the 바카라 사이트˜market value바카라 사이트™ of the asset disposed of, but if a disposal is not by way of a bargain at arm바카라 사이트™s length then market value of the asset disposed of is substituted for the actual consideration, see TCGA92/S17 and S18 and guidance at CG14560+.
A 바카라 사이트˜bargain made at arm바카라 사이트™s length바카라 사이트™ is a normal commercial transaction between two or more persons. All of the parties involved will be trying to obtain the best deal for themselves in their particular circumstances. Whether a particular outcome represents this 바카라 사이트˜best deal바카라 사이트™ is to be determined by reference to the particular circumstances of the disposal.
Before the Share Loss Relief rules were rewritten for ITA 2007, previous versions demanded that the disposal was by way of a bargain made at arm바카라 사이트™s length for full consideration. The rewrite deleted the words 바카라 사이트˜for full consideration바카라 사이트™ as they did not impose any additional requirement: the meaning of the statute was therefore unchanged in ITA 2007.
For guidance on the meaning of a bargain at arm바카라 사이트™s length, see CG14540+.