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Charge under Schedule 4B—overview

If a transfer of value by trustees is treated as linked with trustee borrowing (see I5.1259), the trustees are treated for capital gains purposes as¹:

1. Ìý

   •ÌýÌýÌýÌý disposing of, and

2. Ìý

   •ÌýÌýÌýÌý immediately reacquiring

3. Ìý

   •ÌýÌýÌýÌý the whole or part of the 'remaining chargeable assets'

4. Ìý

   •ÌýÌýÌýÌý at their market value

Whether the deemed disposal is of the whole or part of the remaining chargeable assets depends on how much of the outstanding trustee borrowing has been applied in making the transfer. This is determined by various fractions² (see below).

In addition to the disposal being treated as made for a consideration equal to the whole of the market value of each of those assets (or where appropriate a proportion), it is also treated as a bargain made at arm's length³.

Terms used in deemed disposal fractions

The fractions used to determine whether the