ihta84/s10.- Dispositions not intended to confer gratuitous benefit.

Dispositions that are not transfer of value

[1975 s.20(4).]

10.-(1) A disposition is not a transfer of value if it is shown that it was not intended, and was not made in a transaction intended, to confer any gratuitous benefit on any person and either-

(a) that it was made in a transaction at arm's length between persons not connected with each other, or

(b) that it was such as might be expected to be made in a transaction at arm's length between persons not connected with each other.

[1975 s.20(4).]

(2) Subsection (1) above shall not apply to a sale of [unquoted shares or unquoted debentures¹] unless it is shown that the sale was at a price freely negotiated at the time of the sale or at a price such as might be expected to have been freely negotiated at the time of the sale.

[1975 s.20(4), (7);
1978 s.74(1).]

(3) In this section-

"disposition" includes anything treated as a disposition by virtue of section 3(3) above;
"transaction" includes a series of transactions and any associated operations.

1 1987 Sch.8, para.1, with effect from 17 March 1987. Originally "shares or debentures not quoted on a recognised stock exchange".