Conegate: interpretations of the value shifting rule

There are various questions that anyone involved in group restructurings whether as an external adviser or in-house has to grapple with from time to time for which there may be received wisdom passed down from generation to generation but often no firm answers. These include questions such as how the reorganisation provisions in TCGA 1992 s 126 et seq. interact with the value shifting rule in TCGA 1992 s 29; and how you ascertain what consideration a person would have demanded from himself had he been dealing with himself at arm’s length.

The absurdity inherent in that last question at least partly underpins the widely held belief that the value shifting rule in s 29 requires value to move from shares held by one shareholder...