Taxation of Chargeable Gains Act 1992 Schedule 4A paragraph 3

Meaning of "for consideration"

Section 3 of Schedule 4A defines what "for consideration" means when determining whether a disposal of an interest in a settlement has been made for consideration, which is a key concept for the Schedule's rules on disposals involving settled property.

• A disposal is "for consideration" if any person gives or receives actual consideration for, or in connection with, any transaction that brings about the disposal.
• "Consideration" means real, actual consideration — it does not include any amount that is merely deemed to be consideration under other provisions of the Taxation of Chargeable Gains Act 1992.
• Consideration in the form of another interest under the same settlement is ignored, provided that other interest has not itself previously been disposed of for consideration.
• The definition applies broadly to any person involved in the transaction, not just the person making or receiving the disposal.