Section 29A | (1) Subject to the provisions of this Act a person’s... ^F1

(1)Subject to the provisions of this Act a person’s acquisition or disposal of an asset shall for the purposes of this Act be deemed to be for a consideration equal to the market value of the asset—^F1

(a)where he acquires or, as the case may be, disposes of the asset otherwise than by way of a bargain made at arm’s length, and in particular where he acquires or disposes of it by way of gift or on a transfer into settleinent by a settlor or by way of distribution from a company in respect of shares in the company, or^F1

(b)where he acquires or, as the case may be, disposes of the asset wholly or partly for a consideration that cannot be valued, or in connection with his own or another’s loss of office or employment or diminution of emoluments, or otherwise in consideration for or recognition of his or another’s services or past services in any office or employment or of any service rendered or to be rendered by him or another.^F1

(2)Except in the case specified in subsection (4) below, subsection (1) above shall not apply to the acquisition of an asset if—^F1F2

(a)there is no corresponding disposal of it, or the corresponding disposal is made by an excluded person, and^F1F2

(b)there is no consideration in money or money’s worth or the consideration is of an amount or value lower than the market value of the asset.^F1

(3)In any case where—^F1F3

(a)apart from this subsection, subsection (1) above would apply to the acquisition of an asset, and^F1F3

(b)the condition in subsection (2)(b) above is fulfilled with respect to the acquisition, and^F1F3

(c)the corresponding disposal is made on or after 6th April 1983 and before 6th April 1985, and^F1F3

(d)the corresponding disposal is made by an excluded person who is within the charge to capital gains tax or corporation tax in respect of any chargeable gain accruing to him on the disposal,^F1F3

then, if the person acquiring the asset and the excluded person so elect by notice in writing given to the Board within the period of two years beginning at the end of the chargeable period in which the corresponding disposal is made, subsection (1) above shall not apply to the acquisition or the corresponding disposal.

(4)There shall be made all such adjustments of capital gains tax or corporation tax (in respect of chargeable gains), whether by way of assessment or by way of discharge or repayment of tax, as may be required in consequence of the making of an election under subsection (3) above.^F1F3

(5)In this section “excluded person” means—^F1

(a)a person who is neither resident nor ordinarily resident in the United Kingdom; or^F1

(b)a person who is wholly exempt from tax in respect of chargeable gains, or would be so exempt on making a claim for exemption; or^F1

(c)a charity; or^F1

(d)a registered friendly society; or^F1

(e)a person making the disposal for the purposes of—^F1

(i)a fund to which section 218 or 226(6) of the Taxes Act 1970 or section 36 of the Finance Act 1980 applies, or^F1F4

(ii)an exempt approved scheme or statutory scheme as defined in Chapter II of Part 11 of the Finance Act 1970.^F1