8 Section 282, TCGA
8.1 If a capital asset is transferred by gift, the normal CGT rules are that the transfer is deemed to take place at market value (Section 17, TCGA). There is the prospect of gifts on trading assets being held over. Otherwise, the making of a gift can trigger a capital gains tax charge on the donor.
8.2 If the donor fails to pay the tax in question, it may be assessed on the donee under Section 282.
8.3 Section 282(2) TCGA provides that a person paying an amount of tax in pursuance of this section shall be entitled to recover a sum of that amount from the donor. It is therefore clear that this does not make allowance for the recovery of interest charged under the TMA, unlike the previous sections. 8.4 Gifts into companies are surprisingly common but normally in respect of trading assets for which a holdover election can be made: an unincorporated business will often be transferred into a limited company using the provisions of Section 165, TCGA. This provides for the excess of the value over the consideration paid to be held over. 8.5 As an example, Earl Soham IT Consultants is a very profitable partnership of Mr Green and Mr Black. They transfer the assets and undertaking into a limited company expressly set up for the purpose, with the inspired name of Earl Soham IT Consultants Limited. The goodwill is transferred into the company at a value of £50,000, whereas it is considered to have a value of £250,000. The gain that would otherwise arise under the provisions of Section 17 TCGA is held over under the provisions of Section 165, TCGA. They also transfer into the limited company two properties: the first property is occupied by the business and the second property is the next door property, which is rented out to the village butcher. Each property has a value of £300,000 but each is transferred into the limited company at its original cost to the partners of £50,000. The two partners are wrongly advised and believe that the gains on both properties can be held over. In fact the gain on the second premises cannot be held over. If they fail to pay the capital gains tax that crystallises on the second property, the tax can be assessed on the Company.
9 Schedule 28, Finance Act 2000
9.1 This relates to UK tax payable by a non-resident company, which is not paid by that company.
9.2 The companies which may be required to pay the tax in question are any company in the same group as the defaulting company, any member of a consortium owning the defaulting company and any company in the same 51% group as any consortium
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