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Transfers of interests in land between certain associated persons.
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19.—(1) Where an interest in land is disposed of by any person to a person connected with him (hereafter referred to as the transferee) and—
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(a) the interest is disposed of at a price greater than its market value, and
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(b) the price—
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(i) does not fall to be taken into account, in relation to the disponor, in computing for tax purposes the profits or gains of a trade which is, or includes, a business of dealing in or developing land, but
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(ii) does fall to be so taken into account in relation to the transferee,
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the transferee shall for tax purposes be deemed to have acquired the interest at a price equal to the market value thereof at the time of its acquisition by him.
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(2) Where an interest in land is disposed of by any person to a person connected with him (hereafter referred to as the transferee) and—
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(a) the interest is disposed of at a price less than its market value, and
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(b) the price—
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(i) does not fall to be taken into account, in relation to the transferee, in computing for tax purposes the profits or gains of a trade which is, or includes, a business of dealing in or developing land, but
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(ii) does fall to be so taken into account in relation to the disponor,
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the disponor shall for tax purposes be deemed to have disposed of the interest at a price equal to the market value thereof at the time of the disposal by him.
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A disposal by way of gift shall be regarded for the purposes of this subsection as being a disposal at a nominal price.
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(3) In the application of this section to a case in which a lease is granted, any reference to price shall be construed as a reference to the fine, premium or like sum payable for the grant of the lease.
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