Where there is a land transaction under which the chargeable interest in question is either:
- acquired otherwise than by a bargain made at arm’s length; or
- is treated by section 18 of the Taxation of Chargeable Gains Act 1992 (connected persons) as so acquired,
and the buyer is or becomes liable to pay (or does in fact pay) any Capital Gains Tax due in respect of the corresponding disposal of the chargeable interest, then the buyer’s liability or payment does not count as chargeable consideration for the transaction.
This exclusion does not, however, apply if there is any other chargeable consideration.