CG46800 | Value shifting in groups before 2011: outline

TCGA92/S30, TCGA92/S31, TCGA92/S32 & TCGA92/S33

TCGA92/S30 provides for the consideration for a disposal to be increased by a just and reasonable amount where a scheme or arrangements

• materially reduces the value of an asset, and

• gives rise to a tax-free benefit.

General instructions on Section 30, are at CG13260+.

Before 1989 the value shifting rules did not apply to the disposal by one company of shares in another company where the reduction in value resulted from

• the payment of a dividend at a time when both companies were members of the same group

• the disposal of an asset by the second company at no gain/no loss, under what is now TCGA92/S171, at a time when both companies were members of the same group

Exploitation of the exclusion for group dividends led to changes to apply the value shifting rules in certain circumstances from 1989. Further amendments were made in 1999. These rules acted to modify the application of Section 30.

Finance Act 2011 replaced these rules with a Targeted Anti-Avoidance Rule for disposals of shares and securities by companies on or after 19 July 2011. See CG48500+. The current version of Section 31 is a separate rule to Section 30. Section 30 applies to disposals of other assets by companies.

The guidance for the pre-2011 rules at CG46800 to CG46922 was archived in 2019. This can be accessed through earlier versions of the HMRC website held by the National Archive.