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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › capital gain group
Sir i understand that assets within capital gain group members are transferred at no loss/no gain . So if the cost of of an asset is £100000 and indexed cost is £130000 at the date of transfer to group member company,its base cost will be £130000 to the company acquiring the asset. But what happens if first company sold the asset to its group member company at £150000. Deemed proceed will be 130000 as above but how is £150000 which company received from group member company is accounted for?
Assets will for accounting purposes most likely be transferred at open market value but for TAX purposes they are treated as no gain no loss transfers!