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Section 10 Dispositions not intended to confer gratuitous benefit.

United Kingdom

(1)

A disposition is not a transfer of value if it is shown that it was not intended, and was not made in a transaction intended, to confer any gratuitous benefit on any person and either—

(a)

that it was made in a transaction at arm’s length between persons not connected with each other, or

(b)

that it was such as might be expected to be made in a transaction at arm’s length between persons not connected with each other.

(2)

Subsection (1) above shall not apply to a sale of F1unquoted shares or unquoted debentures unless it is shown that the sale was at a price freely negotiated at the time of the sale or at a price such as might be expected to have been freely negotiated at the time of the sale.

(3)

In this section—

  • “disposition” includes anything treated as a disposition by virtue of section 3(3) above;

  • “transaction” includes a series of transactions and any associated operations.

Annotations

Textual amendments

F1

Finance Act 1987 Sch. 8, para. 1,with effect from 17March 1987.Originally

“shares or debentures not quoted on a recognised stock exchange”.

Notes on the whole Act

Textual amendments

F1

By Finance Act 1986 s. 100(1), on and after 25 July 1986 the Capital Transfer Tax Act 1984 may be cited as the Inheritance Tax Act 1984.

Notes on Dispositions that are not transfers of value (and omissions that do not give rise to deemed dispositions)

Textual amendments

F1

Words in s. 10 cross-heading inserted (15.9.2016) by Finance Act 2016 (c. 24), s. 94(2)