# Disposals to Connected Parties

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

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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.
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## **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’.