For a gain or loss to be within the scope of tax on chargeable gains, there must be a chargeable disposal of a chargeable asset by a chargeable person. See C1.307, C1.301 and C1.102 respectively. This article discusses chargeable disposals made by way of gift.
Individuals, trustees and personal representatives are subject to capital gains tax on chargeable gains. Companies are subject to corporation tax on chargeable gains. See C1.102.
For a discussion of the computation of chargeable gains and losses, see C1.105. For the rates of tax that apply to chargeable gains, see C1.107.
Disposal by way of a gift
For capital gains purposes, a gift is the transfer of an asset from the donor (also known as the disponer or transferor) to the donee (also known as the disponee or transferee) that is not a 'bargain at arm's length'1. A bargain at arm's length is a transaction where the buyer and seller act independently without one party influencing the other. The transaction is considered not to be a bargain at arm's
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