CG44122 - Targeted rules to prevent income to capital converter schemes by companies - no double taxation

Where both TCGA92/S184G and existing anti-avoidance rules could potentially apply to the same transaction, double taxation will not arise (for example through the restriction of losses used against a capital gain and re-characterisation of all or part of the consideration as an income profit). This is because TCGA92/S37(1) acts to disregard, in computing the amount of the consideration for chargeable gains purposes, any amount taken into account in computing the income of the person making the disposal.