Finance Act 1962

6 (1) Where, in the case of a man and his wife living with him, the man disposes of an asset acquired or to be acquired by him to the wife, or the wife disposes of an asset acquired or to be acquired by her to the man, then—

(a) the one making the disposal shall not be chargeable under Case VII in respect of an acquisition and disposal by reference to that disposal; and

(b) the one to whom the disposal is made shall be treated as if the other's acquisition of the asset had been his or her acquisition of it.

(2) Where a company resident and ordinarily resident in the United Kingdom disposes of an asset acquired or to be acquired by it to another such company at a time when either is the subsidiary of the other, or both are subsidiaries of a third company (" subsidiary " having for this purpose the meaning assigned to it for certain purposes of the profits tax by section forty-two of the Finance Act, 1938), then—

(a) the first-mentioned company shall not be chargeable under Case VII in respect of an acquisition and disposal by reference to that disposal; and

(b) the other company shall be treated as if the first-mentioned company's acquisition of the asset had been its acquisition of it.

(3) Where a person disposes of an asset to a company of which that person has control, or a company disposes of an asset to a person having control of the company, no loss accruing to the one making the disposal from the acquisition and disposal of the asset shall be allowable under Case VII otherwise than by deduction from any gain accruing on the disposal of assets to the other while the person in question has control of the company; and for the purposes of this sub-paragraph an individual shall be treated as having control of a company if the individual's wife or husband has control of it, or if they together have control of it.