# Disposals to Connected Parties

{% hint style="warning" %}
Disposals made to a connected party (other than a spouse/civil partner) are deemed to be made at market value at the date of disposal. Any actual consideration given by the connected party for a cryptoasset is ignored.
{% endhint %}

If there is a gain, it is simply aggregated with the other gains in the year. 

{% hint style="danger" %}
If it is a loss, then it cannot be set against other gains in the year. This is called a ‘clogged loss’. 

It can only be set against gains to the same connected person at a time when they remain connected:

* in the same tax year; or
* carried forward to offset against future gains made on disposals to the same person.

These can be gains of any type, such as shares or property; not just cryptoassets.
{% endhint %}

## **Who is connected?**

For the purposes of capital gains tax, an individual is connected with all of the following:

* his spouse or civil partner
* his ‘relatives’ (defined as ancestors such as one’s parents or grandparents, lineal descendants such as children or grandchildren, and brothers or sisters)
* the spouses or civil partners of his ‘relatives’
* the ‘relatives’ of his spouse or civil partners and the spouses or civil partners of these relatives
* his business partners, their spouses / civil partners and their ‘relatives’
* trustee of settlement in which he or a connected person are settlor
* a company which he controls (with or without connected persons). This control can be via giving another person directions.

A taxpayer is not connected with his uncles, cousins, nieces or nephews, as they are not ‘relatives’.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.recap.io/uk-tax-guide-for-individuals/cryptocurrency-tax/capital-gains-tax/disposals-to-connected-parties.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.