Revenue Note for Guidance

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Revenue Note for Guidance

550 Assets disposed of in series of transactions

This section contains an anti-avoidance measure to prevent schemes whereby property could be disposed of in separate parts to connected persons so that the sum of the total of each part is less than what the property would command as a whole. In such circumstances the amount to be taken as consideration for the transactions is the greater value apportioned rateably over the separate disposals.


A piece of land is worth 500,000. It is sold in five equal lots to connected persons at 80,000 each. Thus, the aggregate consideration on sale of the land is 400,000 which is 100,000 less than it would be if the land had been sold in one lot at market value. The market value rule available under section 549 is not sufficient in itself to deal with the situation as each plot is worth no more than 80,000. Accordingly, section 550 provides that the value to be placed on each plot for the purposes of computing chargeable gains is one-fifth of 500,000, namely, 100,000.

Relevant Date: Finance Act 2021