CG66661 - Gifts: computation

Where land is given or transferred at less than market value to a relevant housing association you do not apply the market value rules (TCGA92/S17) so the transfer is not treated as taking place at market value.

If the consideration for the transfer is greater than the sums allowable as a deduction under TCGA92/S38, which do not include the indexation allowable, then you compute the chargeable gain (or allowable loss) in the normal way using the actual consideration received as the disposal proceeds.

If the consideration does not exceed the amount of the Section 38 expenditure the person making the disposal will be treated as making neither a gain nor a loss after any indexation allowance. The registered housing association is treated as if it had the original owner's allowable expenditure and date of acquisition.