CG57100 - Close companies: special rules for shares
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.
TCGA92/S124
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 It is possible that the CGT rule may still apply even though the income tax provisions were repealed in 1989.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.
TCGA92/S125
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.