SolvedCG57100 | Close companies: special rules for shares
From HM Revenue & Customs · Capital Gains Manual
Two CGT rules may affect the CGT treatment of a disposal of shares in a close company. CT60000+ provide general guidance on close companies with abroad definition at CT60060.
This reduces the gain on the disposal of shares if the shareholder has incurred a higher rate income tax liability on a close company apportionment. It is possible that the CGT rule may still apply even though the income tax provisions were repealed in 1989. See CG57001.
This decreases the CGT base cost of shares if a close company has transferred assets other than by way of a bargain made at arm’s length at undervalue. See CG57002.