Dear Tutor
Actual proceeds or market value in the case of gifts and disposals which are not bargains at arms length.
could you please explain it to me what does no bargains at arms length mean with a clear example?
thank you in advance
Ask the Tutor ACCA TX-UK
CGT actual proceeds
The expression simply means that where a gift (outright gift or sale at undervalue) is made, then in computing the gain arising you must use the open market value of the asset - the value that would be achieved on a transaction with a 3rd party.
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