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Taxation of Chargeable Gains Act 1992

Taxation of Chargeable Gains Act 1992

1992 c.12 · 764 provisions

An Act to consolidate certain enactments relating to the taxation of chargeable gains.

Part 1: Capital gains tax and corporation tax on chargeable gains

Chapter 1: Capital gains tax

Section 1: Capital gains tax
Section 1A: Territorial scope
Section 1B: Non-UK residents: UK branch or agency
Section 1C: Non-UK residents: disposing of an "interest in UK land"
Section 1D: Non-UK residents: assets deriving 75% of value from UK land etc
Section 1E: Losses deductible only when within scope of tax etc
Section 1F: Allowable losses to be used in most beneficial way etc
Section 1G: Gains accruing to UK resident individuals in split years
Section 1H: The main rates of CGT
Section 1I: Income taxed at higher rates or gains exceeding unused basic rate band
Section 1J: Section 1I: definitions and other supplementary provision
Section 1K: Annual exempt amount
Section 1L: Increasing annual exempt amount to reflect increases in CPI
Section 1M: Temporary non-residents
Section 1N: Section 1M(1): assets acquired in temporary period of non-residence
Section 1O: Definitions used in Chapter

Chapter 2: Corporation tax on chargeable gains

Section 2: Corporation tax on chargeable gains
Section 2A: Company's total profits to include chargeable gains
Section 2B: Territorial scope of charge to corporation tax on chargeable gains
Section 2C: Non-UK resident company with UK permanent establishment
Section 2D: Application of CGT principles in calculating gains and losses
Section 2E: References to income tax or Income Tax Acts in case of companies
Section 2F: Interaction of capital gains tax and corporation tax
Section 2G: Assets of a company vested in a liquidator

Chapter 3: Attribution of gains of non-UK resident close companies

Section 3: Gains attributed to UK resident individuals etc
Section 3A: Gains connected to avoidance or foreign activities etc
Section 3B: Participators and their interests
Section 3C: Prevention of double UK taxation
Section 3D: Individuals who were non-UK domiciled
Section 3E: Temporary non-residents
Section 3F: Non-resident groups of companies
Section 3G: Supplementary provisions
Section 4: Rates of capital gains tax
Section 4A: Section 4: special cases
Section 4B: Deduction of losses etc in most beneficial way
Section 4BA: Rates, and use of unused basic rate band, in certain cases
Section 4BB: Residential property gain or loss
Section 5: Accumulation and discretionary settlements.
Section 6: Other special cases.
Section 7: Time for payment of tax.
Section 8: Company's total profits to include chargeable gains.
Section 9: Residence, including temporary residence.
Section 10: Non-resident with United Kingdom branch or agency.
Section 10A: Temporary non-residents.
Section 10AA: Section 10A: supplementary
Section 10B: Non-resident company with United Kingdom permanent establishment
Section 11: Visiting forces and official agents
Section 12: Non-UK domiciled individuals to whom remittance basis applies
Section 13: Attribution of gains to members of non-resident companies.
Section 13A: Section 13(5): interpretation
Section 14: Non-resident groups of companies.
Section 14A: Section 13: non-UK domiciled individuals
Section 14B: Meaning of "non-resident CGT disposal"
Section 14C: Meaning of "disposal of a UK residential property interest"
Section 14D: Persons chargeable to capital gains tax on NRCGT gains
Section 14E: Further provision about use of NRCGT losses
Section 14F: Persons not chargeable under section 14D if a claim is made
Section 14G: Section 14F: divided companies
Section 14H: Section 14F: arrangements for avoiding tax

Part II: General Provisions relating to computation of gains and acquisitions and disposals of assets

Chapter I: Introductory

Section 15: Computation of gains.
Section 16: Computation of losses.
Section 16ZA: Losses: non-UK domiciled individuals
Section 16ZB: Individual who has made election under section 16ZA: foreign chargeable gains remitted in tax year after tax year in which accrue
Section 16ZC: Individual who has made election under section 16ZA and to whom remittance basis applies
Section 16ZD: Section 16ZC: supplementary
Section 16A: Restrictions on allowable losses
Section 17: Disposals and acquisitions treated as made at market value.
Section 18: Transactions between connected persons.
Section 19: Deemed consideration in certain cases where assets disposed of in a series of transactions.
Section 20: Original market value and aggregate market value for purposes of section 19.

Chapter II: Assets and disposals of assets

Section 21: Assets and disposals.
Section 22: Disposal where capital sums derived from assets.
Section 23: Receipt of compensation and insurance money not treated as a disposal.
Section 24: Disposals where assets lost or destroyed, or become of negligible value.
Section 24A: Structures and buildings contributions allowances: destruction of asset
Section 25: Non-residents: deemed disposals.
Section 25ZA: Postponing gain or loss under section 25(3): interests in UK land
Section 25A: Long funding leases of plant or machinery: deemed disposals
Section 26: Mortgages and charges not to be treated as disposals.
Section 26A: Transfers in respect of dormant assets
Section 27: Disposals in cases of hire-purchase and similar transactions.
Section 28: Time of disposal and acquisition where asset disposed of under contract.
Section 28A: Contracts completed after ordinary notification period
Section 29: General provisions.
Section 30: Tax-free benefits.
Section 31: Disposal of shares or securities by a company
Section 31A: Asset-holding company leaving the group.
Section 32: Disposals within a group followed by a disposal of shares.
Section 33: Provisions supplementary to sections 30 to 32.
Section 33A: Modification of sections 30 to 33 in relation to chargeable intangible asset
Section 34: Transactions treated as a reorganisation of share capital.

Chapter III: Computation of gains: General provisions

Section 35: Assets held on 31st March 1982 (including assets held on 6th April 1965).
Section 35A: Disposal of asset acquired on no gain/no loss disposal
Section 36: Deferred charges on gains before 31st March 1982.
Section 36A: Re-basing in relation to direct or indirect disposals of UK land
Section 37: Consideration chargeable to tax on income.
Section 37A: Consideration on disposal of certain leases
Section 37B: Consideration on certain disposals: structures and buildings allowances
Section 38: Acquisition and disposal costs etc.
Section 39: Exclusion of expenditure by reference to tax on income.
Section 39A: Exclusion of certain expenditure: structures and buildings allowances
Section 40: Interest charged to capital.
Section 41: Restriction of losses by reference to capital allowances and renewals allowances.
Section 41A: Restriction of losses: long funding leases of plant or machinery
Section 42: Part disposals.
Section 43: Assets derived from other assets.
Section 44: Meaning of "wasting asset".
Section 45: Exemption for certain wasting assets.
Section 46: Straightline restriction of allowable expenditure.
Section 47: Wasting assets qualifying for capital allowances.
Section 47A: Exemption for certain disposals under, or after leaving, cash basis
Section 47B: Disposals made by persons after leaving cash basis
Section 48: Consideration due after time of disposal.
Section 48A: Unascertainable consideration
Section 49: Contingent liabilities.
Section 50: Expenditure reimbursed out of public money.
Section 51: Exemption for winnings and damages etc.
Section 52: Supplemental.

Chapter IV: Computation of gains: the indexation allowance

Section 52A: Chapter to apply only for corporation tax purposes
Section 53: The indexation allowance and interpretative provisions.
Section 54: Calculation of indexation allowance.
Section 55: Assets owned on 31st March 1982 or acquired on a no gain/no loss disposal.
Section 56: Part disposals and disposals on a no-gain/no-loss basis.
Section 57: Receipts etc. which are not treated as disposals but affect relevant allowable expenditure.

Chapter 5: Computation of gains and losses: relevant high value disposals

Section 57A: Gains and losses on relevant high value disposals

Chapter 6: Computation of gains and losses: non-resident CGT disposals

Section 57B: Gains and losses on non-resident CGT disposals

Chapter 7: Computation of gains and losses: disposals of residential property interests

Section 57C: Gains and losses on disposals of residential property interests

Part III: Individuals, partnerships, trusts and collective investment schemes etc

Chapter I: Miscellaneous provisions

Section 58: Spouses and civil partners.
Section 59: Partnerships.
Section 59A: Limited liability partnerships.
Section 59AA: Limited liability partnerships: deemed disposal
Section 59B: Alternative investment fund managers (1)
Section 59C: Alternative investment managers (2)
Section 60: Nominees and bare trustees.
Section 61: Funds in court.
Section 62: Death: general provisions.
Section 63: Death: application of law in Scotland.
Section 63A: Death: application of law in Northern Ireland
Section 64: Expenses in administration of estates and trusts.
Section 65: Liability for tax of trustees or personal representatives.
Section 66: Insolvents' assets.
Section 67: Provisions applicable where section 79 of the Finance Act 1980 has applied.

Chapter II: Settlements

Section 68: Meaning of "settled property".
Section 68A: Meaning of "settlor"
Section 68B: Transfer between settlements: identification of settlor
Section 68C: Variation of will or intestacy, etc: identification of settlor
Section 69: Trustees of settlements.
Section 69A: Sub-fund settlements
Section 70: Transfers into settlement.
Section 71: Person becoming absolutely entitled to settled property.
Section 72: Termination of life interest on death of person entitled.
Section 73: Death of life tenant: exclusion of chargeable gain.
Section 74: Effect on sections 72 and 73 of relief under section 165 or 260.
Section 75: Death of annuitant.
Section 76: Disposal of interests in settled property.
Section 76A: Disposal of interest in settled property: deemed disposal of underlying assets.
Section 76B: Transfers of value by trustees linked with trustee borrowing.
Section 77: Charge on settlor with interest in settlement.
Section 78: Right of recovery.
Section 79: Provisions supplemental to sections 77 and 78.
Section 79A: Restriction on set-off of trust losses.
Section 79B: Attribution to trustees of gains of non-resident companies.
Section 80: Trustees ceasing to be resident in U.K.
Section 80A: Postponing gain or loss under section 80(2): interests in UK land
Section 81: Death of trustee: special rules.
Section 82: Past trustees: liability for tax.
Section 83: Trustees ceasing to be liable to U.K. tax.
Section 83A: Trustees both resident and non-resident in a year of assessment
Section 84: Acquisition by dual resident trustees.
Section 85: Disposal of interests in non-resident settlements.
Section 85A: Transfers of value: attribution of gains to beneficiaries and treatment of losses
Section 86: Attribution of gains to settlors with interest in non-resident or dual resident settlements.
Section 86A: Attribution of gains to settlor where temporarily non-resident
Section 87: Non-UK resident settlements: attribution of gains to beneficiaries
Section 87A: Section 87: matching
Section 87B: Section 87: remittance basis
Section 87C: Sections 87 and 87A: disregard of certain capital payments
Section 87D: Sections 87 and 87A: disregard of capital payments to non-residents
Section 87E: Sections 87 and 87A: disregarded payments to temporary non-resident
Section 87F: Sections 87 and 87A: disregarded payments in year settlement ends
Section 87G: Settlor liable if capital payment received by close family member
Section 87H: Meaning of "close member of the settlor's family"
Section 87HA: Onward gifts from non-residents or qualifying new residents
Section 87I: Non-UK resident settlements: recipients of onward gifts
Section 87J: Relevant parts of payment from which onward gift derived
Section 87K: Attribution of gains or payments to recipient of onward gift
Section 87L: Cases where settlor liable following onward gift
Section 87M: Cases where recipient of onward gift is user of remittance basis
Section 87N: Sections 87 and 87A: disregard of payments to migrating beneficiary
Section 87P: Sections 87 and 87A: temporary migration after payment disregarded
Section 88: Gains of dual resident settlements.
Section 89: Migrant settlements etc.
Section 90: Sections 87 and 89(2): transfers between settlements
Section 90A: Section 90: transfers made for consideration in money or money's worth
Section 91: Increase in tax payable under section 87 or 89(2).
Section 92: Qualifying amounts and matching.
Section 93: Matching: special cases.
Section 94: Transfers of settled property where qualifying amounts not wholly matched.
Section 95: Matching after transfer.
Section 96: Payments by and to companies.
Section 97: Supplementary provisions.
Section 97A: Value of benefit conferred by capital payment made by way of loan
Section 97B: Value of benefit conferred by capital payment made by way of making movable property available
Section 97C: Value of benefit conferred by capital payment made by way of making land available
Section 98: Power to obtain information for purposes of sections 87 to 90.
Section 98A: Settlements with foreign element: information.

Chapter III: Collective investment schemes and investment trusts etc

Section 99: Application of Act to unit trust schemes.
Section 99A: Treatment of umbrella schemes
Section 99B: Calculation of the disposal cost of accumulation units
Section 100: Exemption for authorised unit trusts etc.
Section 100A: Exemption for certain EEA UCITS
Section 101: Transfer of company's assets to investment trust.
Section 101A: Transfer within group to investment trust.
Section 101B: Transfer of company's assets to venture capital trust.
Section 101C: Transfer within group to venture capital trust.
Section 102: Collective investment schemes with property divided into separate parts.
Section 103: Restriction on availability of indexation allowance.
Section 103A: Application of Act to certain offshore funds
Section 103B: Application of section 99B to transparent funds
Section 103C: Power to make regulations about collective investment schemes
Section 103D: Application of Act to tax transparent funds
Section 103DA: Tax transparent funds: share pooling etc
Section 103DB: UK property rich collective investment vehicles etc
Section 103DC: Co-ownership schemes which are to be treated as partnerships

Chapter 4: Collective investment schemes: exchanges, mergers and schemes of reconstruction

Section 103E: Application of Chapter
Section 103F: Exchanges of units for units in the same scheme
Section 103G: Exchange of units for those in another collective investment scheme
Section 103H: Scheme of reconstruction involving issue of units
Section 103I: Scheme of reconstruction involving conversion scheme
Section 103J: Supplementary provisions
Section 103K: Restriction on application of sections 103G, 103H and 103I

Chapter 5: Carried interest

Section 103KA: Carried interest
Section 103KB: Carried interest: consideration on disposal etc of right
Section 103KC: Carried interest: foreign chargeable gains
Section 103KD: Carried interest: anti-avoidance
Section 103KE: Carried interest: avoidance of double taxation
Section 103KF: Relief for external investors on disposal of partnership asset
Section 103KFA: Election for carried interest gains to be chargeable as scheme profits arise
Section 103KFB: Election in relation to scheme to apply to associated schemes
Section 103KFC: Interaction with other charges
Section 103KFD: Deemed accrual of loss where carried interest never arises
Section 103KFE: Anti-avoidance
Section 103KG: Meaning of "arise" in Chapter 5
Section 103KH: Interpretation of Chapter 5

Part IV: Shares, securities, options etc.

Chapter I: General

Section 104: Share pooling: general interpretative provisions.
Section 105: Disposal on or before day of acquisition of shares and other unidentified assets.
Section 105A: Shares acquired on same day: election for alternative treatment
Section 105B: Provision supplementary to section 105A
Section 106: Disposal of shares and securities by company within prescribed period of acquisition.
Section 106A: Identification of securities: ... capital gains tax.
Section 107: Identification of securities etc: general rules for corporation tax.
Section 108: Identification of relevant securities for corporation tax.
Section 109: Corporation tax: pre-April 1982 share pools.
Section 110: Indexation for section 104 holdings for corporation tax.
Section 110A: Indexation for section 104 holdings: capital gains tax.
Section 111: Indexation: building society etc. shares.
Section 112: Parallel pooling regulations: corporation tax.
Section 113: Calls on shares: corporation tax.
Section 114: Consideration for options: corporation tax.
Section 115: Exemptions for gilt-edged securities and qualifying corporate bonds etc.
Section 116: Reorganisations, conversions and reconstructions.
Section 116A: Holding beginning or ceasing to fall within section 490 of CTA 2009
Section 116B: Shares beginning or ceasing to be shares to which section 521B of CTA 2009 applies
Section 117: Meaning of "qualifying corporate bond".
Section 117A: Assets that are not qualifying corporate bonds for corporation tax purposes.
Section 117B: Holdings in unit trusts and offshore funds excluded from treatment as qualifying corporate bonds.
Section 118: Amount to be treated as consideration on disposal of deep discount securities etc.
Section 119: Transfers of securities subject to the accrued income scheme.
Section 119A: Increase in expenditure by reference to tax charged in relation to employment-related securities
Section 119B: Section 119A: unchargeable, and unremitted chargeable, foreign securities income
Section 119C: Section 119A: unremitted Part 7A income
Section 120: Increase in expenditure by reference to tax charged in relation to shares etc.
Section 121: Exemption for government non-marketable securities.
Section 122: Distribution which is not a new holding within Chapter II.
Section 123: Disposal of right to acquire shares or debentures.
Section 124: Disposal of shares: relief in respect of income tax consequent on shortfall in distributions.
Section 125: Shares in close company transferring assets at an undervalue.
Section 125A: Effect of share loss relief

Chapter II: Reorganisation of share capital, conversion of securities etc.

Section 126: Application of sections 127 to 131.
Section 127: Equation of original shares and new holding.
Section 128: Consideration given or received by holder.
Section 129: Part disposal of new holding.
Section 130: Composite new holdings.
Section 131: Indexation allowance.
Section 132: Equation of converted securities and new holding.
Section 133: Premiums on conversion of securities.
Section 134: Compensation stock.
Section 135: Exchange of securities for those in another company
Section 136: Scheme of reconstruction involving issue of securities
Section 137: Restriction on application of sections 135 and 136.
Section 138: Procedure for clearance in advance.
Section 138ZA: Share exchanges involving non-UK incorporated close companies
Section 138ZB: Treatment of securities connected with such exchanges
Section 138ZC: Election to disapply section 135 or 136
Section 138A: Use of earn-out rights for exchange of securities.
Section 139: Reconstruction ... involving transfer of business.
Section 140: Postponement of charge on transfer of assets to non-resident company.
Section 140A: Transfer or division of UK business
Section 140B: Section 140A: anti-avoidance.
Section 140C: Transfer or division of non-UK business
Section 140D: Section 140C: anti-avoidance.
Section 140DA: Securities issued on division of business
Section 140E: Merger leaving assets within UK tax charge
Section 140F: Merger: assets outside UK tax charge
Section 140G: Treatment of securities issued on merger
Section 140GA: Disapplication of sections 24 and 122 where subsidiary merges with its parent
Section 140H: Share exchanges
Section 140I: Division of business or transfer of assets
Section 140J: Mergers
Section 140K: Transparent entities: taxation after merger, &c
Section 140L: Interpretation

Chapter III: Miscellaneous provisions relating to commodities, futures, options and other securities

Section 142: Capital gains on stock dividends.
Section 142A: REITs: chargeable gains on stock dividends
Section 143: Commodity and financial futures and qualifying options.
Section 144: Options and forfeited deposits.
Section 144ZA: Application of market value rule in case of exercise of option
Section 144ZB: Exception to rule in section 144ZA
Section 144ZC: Section 144ZB: non-commercial exercise of option
Section 144ZD: Section 144ZB: alteration of value to obtain tax advantage
Section 144A: Cash-settled options.
Section 145: Call options: indexation allowance.
Section 146: Options: application of rules as to wasting assets.
Section 147: Quoted options treated as part of new holdings.
Section 148: Traded options: closing purchases.
Section 148A: Futures and options involving guaranteed returns
Section 148B: Deemed disposals at a gain under section 564(4) of ITTOIA 2005
Section 148C: Deemed disposals at a loss under section 564(4) of ITTOIA 2005
Section 149: Rights to acquire qualifying shares.
Section 149A: Employment-related securities options
Section 149AA: Restricted and convertible employment-related securities and employee shareholder shares
Section 149AB: Shares in research institution spin-out companies
Section 149B: Employee incentive schemes: conditional interests in shares.
Section 149C: Priority share allocations
Section 150: Business expansion schemes.
Section 150A: Enterprise investment scheme.
Section 150B: Enterprise investment scheme: reduction of EIS relief.
Section 150C: Enterprise investment scheme: re-investment.
Section 150D: Enterprise investment scheme: application of taper relief
Section 150E: Seed enterprise investment scheme
Section 150F: Seed enterprise investment scheme: reduction of relief
Section 150G: Seed enterprise investment scheme: re-investment
Section 151: Personal equity plans.
Section 151A: Venture capital trusts: reliefs.
Section 151B: Venture capital trusts: supplementary.
Section 151BA: CITR: identification of securities or shares on a disposal
Section 151BB: CITR: rights issues etc
Section 151BC: CITR: company reconstructions etc
Section 151C: Strips: manipulation of price: associated payment giving rise to loss
Section 151D: Corporate strips: manipulation of price: associated payment giving rise to loss
Section 151E: Exchange gains and losses from loan relationships: regulations
Section 151F: Treatment of alternative finance arrangements
Section 151G: Regulations where non-qualifying shares conditions altered

Chapter 4: Alternative finance arrangements

Section 151H: Introduction
Section 151I: Meaning of "financial institution"
Section 151J: Purchase and resale arrangements
Section 151K: Diminishing shared ownership arrangements : initial acquisition
Section 151KA: Diminishing shared ownership arrangements: refinancing
Section 151L: Deposit arrangements
Section 151M: Profit share agency arrangements
Section 151N: Investment bond arrangements
Section 151O: Provision not at arm's length: exclusion of arrangements from sections 151J to 151N
Section 151P: Purchase and resale arrangements
Section 151Q: Purchase and resale arrangements where return in foreign currency
Section 151R: Diminishing shared ownership arrangements
Section 151S: Other arrangements
Section 151T: Investment bond arrangements are qualifying corporate bonds
Section 151U: Treatment of bond-holder and bond-issuer
Section 151V: Treatment as securities
Section 151W: Investment bond arrangements not unit trust scheme or offshore fund
Section 151X: Exclusion of some alternative finance return from sale consideration
Section 151Y: Diminishing shared ownership arrangements : further provision
Section 151Z: Diminishing shared ownership arrangements: further provision in respect of refinancing

Part V: Transfer of business assets, business asset disposal relief and investors' relief

Chapter I: Transfer of business assets: General provisions

Section 152: Roll-over relief.
Section 153: Assets only partly replaced.
Section 153A: Provisional application of sections 152 and 153.
Section 154: New assets which are depreciating assets.
Section 155: Relevant classes of assets.
Section 156: Assets of Class 1.
Section 156ZA: Intangible fixed assets: roll-over relief
Section 156ZB: Intangible fixed assets: interaction with relief under Chapter 7 of Part 8 of CTA 2009
Section 156A: Cessation of trade by limited liability partnership.
Section 157: Trade carried on by family company: business assets dealt with by individual.
Section 158: Activities other than trades, and interpretation.
Section 159: Non-residents: roll-over relief.
Section 159A: Disposals of interests in UK land by non-residents: roll-over relief
Section 160: Dual resident companies: roll-over relief.
Section 161: Appropriations to and from stock.
Section 162: Roll-over relief on transfer of business.
Section 162A: Election for section 162 not to apply
Section 162B: Disincorporation relief: assets (including pre-FA 2002 goodwill)
Section 162C: Disincorporation relief: post-FA 2002 goodwill
Section 163: Relief for disposals by individuals on retirement from family business.
Section 164: Other retirement relief.

Chapter IA: Roll-over relief on re-investment

Section 164A: Relief on re-investment for individuals.
Section 164B: Roll-over relief on re-investment by trustees.
Section 164BA: Interaction with retirement relief
Section 164C: Restriction applying to retirement relief and roll-over relief on re-investment.
Section 164D: Relief carried forward into replacement shares.
Section 164E: Application of Chapter in cases of an exchange of shares.
Section 164F: Failure of conditions of relief.
Section 164FA: Loss of relief in cases where shares acquired on being issued.
Section 164FF: Qualifying investment acquired from husband or wife.
Section 164FG: Multiple claims.
Section 164G: Meaning of "qualifying company".
Section 164H: Property companies etc. not to be qualifying companies.
Section 164I: Qualifying trades.
Section 164J: Provisions supplementary to section 164I.
Section 164K: Foreign residents.
Section 164L: Anti-avoidance provisions.
Section 164M: Exclusion of double relief.
Section 164MA: Exclusion of double relief
Section 164N: Interpretation of Chapter IA.

Chapter II: Gifts of business assets

Section 165: Relief for gifts of business assets.
Section 165A: Meaning of "holding company", "trading company" and "trading group"
Section 166: Gifts to non-residents.
Section 167: Gifts to foreign-controlled companies.
Section 167A: Gifts of direct or indirect interests in UK land to non-residents
Section 168: Emigration of donee.
Section 168A: Postponing held-over gain: interests in UK land
Section 169: Gifts into dual resident trusts.
Section 169A: Cessation of trade by limited liability partnership
Section 169B: Gifts to settlor-interested settlements etc
Section 169C: Clawback of relief if settlement becomes settlor-interested etc
Section 169D: Exceptions to sections 169B and 169C
Section 169E: Meaning of "settlor" in sections 169B to 169D and 169G
Section 169F: Meaning of "interest in a settlement" in sections 169B to 169D
Section 169G: Meaning of "arrangement" in sections 169B to 169E and information power

Chapter 3: business asset disposal relief

Section 169H: Introduction
Section 169I: Material disposal of business assets
Section 169J: Disposal of trust business assets
Section 169K: Disposal associated with relevant material disposal
Section 169L: Relevant business assets
Section 169LA: Relevant business assets: goodwill transferred to a close company
Section 169M: Relief to be claimed
Section 169N: Amount of relief: general
Section 169O: Amount of relief: special provisions for certain trust disposals
Section 169P: Amount of relief: special provision for certain associated disposals
Section 169Q: Reorganisations: disapplication of section 127
Section 169R: Reorganisations involving acquisition of qualifying corporate bonds
Section 169S: Interpretation of Chapter
Section 169SA: Meaning of "trading company" and "trading group"

Chapter 3A: business asset disposal relief where company ceases to be individual's personal company

Section 169SB: Overview of Chapter
Section 169SC: Election by individual where company ceases to be personal company
Section 169SD: Supplementary election to defer gains until subsequent disposal
Section 169SE: Application of section 169SD where section 116 applies
Section 169SF: Application of section 169SD where sections 127 to 130 apply
Section 169SG: Elections under sections 169SC and 169SD
Section 169SH: Claims for relief in respect of subsequent disposals

Chapter 4: business asset disposal relief where held-over gains become chargeable

Section 169T: Overview of Chapter
Section 169U: Eligibility conditions for deferred business asset disposal relief
Section 169V: Operation of deferred business asset disposal relief

Chapter 5: Investors' relief

Section 169VA: Overview of Chapter
Section 169VB: Qualifying shares, potentially qualifying shares and excluded shares
Section 169VC: Investors' relief
Section 169VD: Disposal where holding consists partly of qualifying shares
Section 169VE: Which shares are in holding immediately before disposal
Section 169VF: Shares treated as disposed of in previous disposal where claim made
Section 169VG: Shares treated as disposed of in previous disposal: no claim made
Section 169VH: Disposals by trustees: further conditions for relief
Section 169VI: Disposals by trustees: relief reduced in certain cases
Section 169VJ: Disposals of interests in shares: joint holdings etc
Section 169VK: Cap on relief for disposal by an individual
Section 169VL: Cap on relief for disposal by trustees of a settlement
Section 169VM: Claims for relief
Section 169VN: Reorganisations where no consideration given
Section 169VO: The appropriate number
Section 169VP: Reorganisations where consideration given
Section 169VQ: Exchange of shares for those in another company
Section 169VR: New shares issued on scheme of reconstruction
Section 169VS: Modification of conditions for being a qualifying share
Section 169VT: Election to disapply section 127
Section 169VU: "Subscribe" etc
Section 169VV: "Trading company" etc
Section 169VW: "Relevant employee"
Section 169VX: "Unremunerated director"
Section 169VY: General definitions

Part VI: Companies, oil, insurance etc.

Chapter I: Companies

Section 170: Interpretation of sections 171 to 181.
Section 171: Transfers within a group: general provisions.
Section 171A: Election to reallocate gain or loss to another member of the group
Section 171B: Election under section 171A: effect
Section 171C: Elections under section 171A: insurance companies
Section 172: Transfer of United Kingdom branch or agency.
Section 173: Transfers within a group: trading stock.
Section 174: Disposal or acquisition outside a group.
Section 175: Replacement of business assets by members of a group.
Section 176: Depreciatory transactions within a group.
Section 177: Dividend stripping.
Section 177A: Restriction on set-off of pre-entry losses.
Section 177B: Restrictions on setting losses against pre-entry gains.
Section 178: Company ceasing to be member of group: pre-appointed day cases.
Section 179: Company ceasing to be member of group: post-appointed day cases.
Section 179ZA: Claim for adjustment of calculations under section 179
Section 179A: Reallocation within group of gain or loss accruing under section 179
Section 179B: Roll-over of degrouping charge on business assets
Section 180: Transitional provisions.
Section 181: Exemption from charge under 178 or 179 in the case of certain mergers.
Section 182: Disposals of debts.
Section 183: Disposals of shares.
Section 184: Definitions and other provisions supplemental to sections 182 and 183.
Section 184A: Restrictions on buying losses: tax avoidance schemes
Section 184B: Restrictions on buying gains: tax avoidance schemes
Section 184C: Sections 184A and 184B: meaning of "qualifying change of ownership"
Section 184D: Sections 184A and 184B: meaning of "tax advantage"
Section 184E: Sections 184A and 184B: "pre-change assets": basic rules
Section 184F: Sections 184A and 184B: "pre-change assets": pooling rules
Section 184G: Avoidance involving losses: schemes converting income to capital
Section 184H: Avoidance involving losses: schemes securing deductions
Section 184I: Notices under sections 184G and 184H
Section 184J: Asset subject to EU exit charge on becoming chargeable asset
Section 185: Deemed disposal of assets on company ceasing to be resident in U.K.
Section 186: Deemed disposal of assets on company ceasing to be liable to U.K. taxation.
Section 187: Postponement of charge on deemed disposal under section 185 or 186.
Section 187A: Deemed disposal under section 185: ATED-related gains and losses
Section 187B: Postponing gain or loss under section 185(2): interests in UK land
Section 188: Dual resident companies: deemed disposal of certain assets.
Section 188A: Election for pooling
Section 188B: Meaning of "NRCGT group"
Section 188C: Transfers within an NRCGT group
Section 188D: Person chargeable to capital gains tax on NRCGT gains accruing to members of an NRCGT group
Section 188E: Further provision about group losses
Section 188F: Companies becoming eligible to join an NRCGT group
Section 188G: Company ceasing to be a member of an NRCGT group
Section 188H: The responsible members of an NRCGT group
Section 188I: Joint and several liability of responsible members
Section 188J: The representative company of an NRCGT group
Section 188K: Interpretation of sections 188A to 188J
Section 189: Capital distribution of chargeable gains: recovery of tax from shareholder.
Section 190: Tax recoverable from another group company or controlling director.
Section 192: Tax exempt distributions.
Section 192A: Exemptions for gains or losses on disposal of shares etc

Chapter II: Oil and mining industries

Section 193: Roll-over relief not available for gains on oil licences.
Section 194: Disposals of oil licences relating to undeveloped areas.
Section 195: Allowance of certain drilling expenditure etc.
Section 195A: Oil licence swaps
Section 195B: Licence-consideration swap
Section 195C: Company that receives mixed consideration: N exceeds C
Section 195D: Company that receives mixed consideration: N does not exceed C
Section 195E: Company that gives mixed consideration
Section 195F: Reimbursed expenditure
Section 196: Interpretation of sections 194 to 195F .
Section 197: Disposals of interests in oil fields etc: ring fence provisions.
Section 198: Replacement of business assets used in connection with oil fields.
Section 198A: Ring fence reinvestment: whole consideration reinvested
Section 198B: Ring fence reinvestment: part of consideration reinvested
Section 198C: Provisional application of sections 198A and 198B
Section 198D: No double claims
Section 198E: Ring fence reinvestments and disposal consideration
Section 198F: Qualification for roll-over relief
Section 198G: Qualification for section 153 relief
Section 198H: Acquisition by member of same group
Section 198I: Exploration, appraisal and development expenditure
Section 198J: Oil and gas: reinvestment after pre-trading disposal
Section 198K: Provisional application of section 198J
Section 198L: Expenditure by member of same group
Section 199: Exploration or exploitation assets: deemed disposals
Section 200: Limitation of losses on disposal of oil industry assets held on 31st March 1982.
Section 201: Royalties.
Section 202: Capital losses.
Section 203: Provisions supplementary to section 202 .

Chapter III: Insurance

Section 204: Policies of insurance and non-deferred annuities
Section 205: Disallowance of insurance premiums as expenses.
Section 210: Life assurance and deferred annuities.
Section 210A: Ring-fencing of losses
Section 210B: Disposal and acquisition of section 119 or 120 securities
Section 210C: Losses on disposal of authorised investment fund assets to connected manager
Section 211: Transfers of business.
Section 211ZA: Transfers of business: transfer of unused losses
Section 211A: Gains of insurance company from venture capital investment partnership
Section 211B: Transfers of assets to certain collective investment schemes
Section 212: Annual deemed disposal of holdings of unit trusts etc.
Section 213: Spreading of gains and losses under section 212.
Section 213A: Power to modify ss. 212 and 213 etc in case of CFCs that are offshore funds
Section 214: Transitional provisions.
Section 214A: Further transitional provisions.
Section 214B: Modification of Act in relation to overseas life insurance companies.
Section 214BA: Interpretation

Chapter IV: Miscellaneous cases

Section 214C: Gains not eligible for taper relief.
Section 215: Disposal of assets on amalgamation of building societies etc.
Section 216: Assets transferred from society to company.
Section 217: Shares, and rights to shares, in successor company.
Section 217A: Transfer of assets on incorporation of registered friendly society.
Section 217B: Rights of members in registered society equated with rights in incorporated society.
Section 217C: Subsequent disposal of assets by incorporated society etc.
Section 217D: Disposal of assets on union, amalgamation or transfer of engagements
Section 218: Disposals of land between the Regulator of Social Housing, the Secretary of State or Scottish Homes and housing associations.
Section 219: Disposals by housing related bodies.
Section 220: Disposals by Northern Ireland housing associations.
Section 221: Harbour authorities.

Part VII: Other property, businesses, investments etc.

Section 222: Relief on disposal of private residence.
Section 222A: Determination of main residence: non-resident CGT disposals
Section 222B: Non-qualifying tax years
Section 222C: Day count test
Section 223: Amount of relief.
Section 223ZA: Amount of relief: individual's residency delayed by certain events
Section 223A: Amount of relief: non-resident CGT disposals
Section 223B: Additional relief: part of private residence let out
Section 224: Relief under sections 223 and 223B: further provisions.
Section 225: Private residence occupied under terms of settlement.
Section 225A: Private residence held by personal representatives
Section 225B: Disposals in connection with divorce, etc
Section 225BA: Deferred payments on disposals in connection with divorce etc
Section 225C: Sale of private residence under certain agreements with employer, etc
Section 225D: Private residence of adult placement carer
Section 225E: Disposals by disabled persons or persons in care homes etc
Section 226: Private residence occupied by dependent relative before 6th April 1988.
Section 226A: Private residence relief: cases where relief obtained under section 260
Section 226B: Exception to section 226A
Section 227: Conditions for roll-over relief.
Section 228: Conditions for relief: supplementary.
Section 229: The relief.
Section 230: Dwelling-houses: special provision.
Section 231: Shares: special provision.
Section 232: Chargeable event when replacement assets owned.
Section 233: Chargeable event when replacement property owned.
Section 234: Chargeable events when bonds owned.
Section 235: Information.
Section 236: Prevention of double charge.
Section 236A: Relief for transfers to share incentive plans
Section 236B: Exemption for employee shareholder shares
Section 236C: Only first £50,000 of shares under associated agreements to be exempt
Section 236D: Shares not exempt if shareholder or connected person has material interest in company
Section 236E: Identification of exempt employee shareholder shares
Section 236F: Reorganisation of share capital involving employee shareholder shares
Section 236G: Relinquishment of employment rights is not disposal of an asset
Section 236H: Disposals to employee-ownership trusts
Section 236I: Trading requirement
Section 236J: All-employee benefit requirement
Section 236K: Further provision about the equality requirement
Section 236L: Cases in which all-employee benefit requirement treated as met
Section 236LA: Trustee independence requirement
Section 236M: Controlling interest requirement
Section 236N: Limited participation requirement
Section 236O: No section 236H relief if disqualifying event in next four tax years
Section 236P: Events which trigger deemed disposal and reacquisition by trustees
Section 236Q: Relief for deemed disposals under section 71
Section 236R: No section 236Q relief if disqualifying event in next four tax years
Section 236S: Identification of shares where section 236H or 236Q applies
Section 236T: Further provision about significant and controlling interests
Section 236U: Interpretation of sections 236H to 236U
Section 237: Superannuation funds, annuities and annual payments.
Section 237A: Share option schemes: release and replacement of options.
Section 238: Approved profit sharing and share option schemes.
Section 238A: ... Share schemes and share incentives
Section 239: Disposals to trustees of employee trusts
Section 239ZA: Relief for disposals by trustees of employee trusts
Section 239A: De-registration of registered pension schemes
Section 240: Leases of land and other assets.
Section 241: UK furnished holiday lettings.
Section 241A: EEA furnished holiday lettings
Section 242: Small part disposals.
Section 243: Part disposal to authority with compulsory powers.
Section 244: Part disposal: consideration exceeding allowable expenditure.
Section 245: Compensation paid on compulsory acquisition.
Section 246: Time of disposal and acquisition.
Section 247: Roll-over relief on compulsory acquisition.
Section 247A: Provisional application of section 247.
Section 248: Provisions supplementary to section 247.
Section 248A: Roll-over relief on disposal of joint interests in land: conditions
Section 248B: Calculation of relief
Section 248C: Excluded land
Section 248D: Milk quotas
Section 248E: Relief on disposal of joint interests in private residence
Section 249: Grants for giving up agricultural land.
Section 250: Woodlands.
Section 251: General provisions.
Section 252: Foreign currency bank accounts.
Section 252A: Foreign currency bank accounts and the remittance basis
Section 253: Relief for loans to traders.
Section 254: Relief for debts on qualifying corporate bonds.
Section 255: Provisions supplementary to section 254.
Section 255A: Hold-over relief for gains re-invested in social enterprises
Section 255B: Gains and losses on investments in social enterprises
Section 255C: Application of section 255B(2) where maximum SI relief not obtained
Section 255D: Application of section 255B(2) where SI relief has been reduced
Section 255E: Reorganisations involving shares to which SI relief is attributable
Section 256: Charities.
Section 256A: Attributing gains to the non-exempt amount: charitable trusts
Section 256B: How gains are attributed to the non-exempt amount: charitable trusts
Section 256C: Attributing gains to the non-exempt amount: charitable companies
Section 256D: How gains are attributed to the non-exempt amount: charitable companies
Section 257: Gifts to charities etc.
Section 257A: Tainted charity donations
Section 258: Works of art etc.
Section 259: Gifts to housing associations.
Section 260: Gifts on which inheritance tax is chargeable etc.
Section 261: Section 260 relief: gifts to non-residents.
Section 261ZA: Gifts of direct or indirect interests in UK land to non-residents
Section 261A: Disposal of know-how as part of disposal of all or part of a trade
Section 261B: Treating trade loss etc as CGT loss
Section 261C: Meaning of "the maximum amount" for purposes of section 261B
Section 261D: Treating excess post-cessation trade or property relief as CGT loss
Section 261E: Meaning of "the maximum amount" for purposes of section 261D
Section 261F: Deemed manufactured payments: effect on repurchase price
Section 261G: Price differences under repos: effect on repurchase price
Section 261H: Power to modify section 261G in non-arm's length case
Section 262: Chattel exemption.
Section 263: Passenger vehicles.
Section 263AZA: Renewables obligation certificates for domestic microgeneration
Section 263ZA: Former employees: employment-related liabilities
Section 263A: Agreements for sale and repurchase of securities: capital gains tax
Section 263AA: Section 263A: interpretation
Section 263B: Stock lending arrangements.
Section 263C: Stock lending involving redemption.
Section 263CA: Stock lending: insolvency etc of borrower
Section 263D: Gains accruing to persons paying manufactured dividends
Section 263E: Structured finance arrangements
Section 263F: Power to modify repo provisions: non-standard repo cases
Section 263G: Power to modify repo provisions: redemption arrangements
Section 263H: Sections 263F and 263G: supplementary provisions
Section 263I: Powers about manufactured overseas dividends
Section 264: Relief for local constituency associations of political parties on reorganisation of constituencies.
Section 265: Designated international organisations.
Section 266: Inter-American Development Bank.
Section 267: Sharing of transmission facilities.
Section 268: Decorations for valour or gallant conduct.
Section 268A: Victims of National-Socialist persecution
Section 268B: Compensation for deprivation of foreign assets
Section 269: Foreign currency for personal expenditure.
Section 270: Chevening Estate.
Section 271: Other miscellaneous exemptions.
Section 271ZA: Visiting forces and staff of designated allied headquarters
Section 271ZB: Official agents of Commonwealth countries or Republic of Ireland etc

Part 7A: UK representatives of non-UK residents

Chapter 1: Treatment of branch or agency as UK representative of non-UK resident

Section 271A: Overview of Chapter
Section 271B: Branch or agency treated as UK representative
Section 271C: Trade or profession carried on in partnership
Section 271D: Interpretation of Chapter

Chapter 2: Capital gains tax obligations and liabilities imposed on UK representatives

Section 271E: Introduction to Chapter
Section 271F: Obligations and liabilities of UK representative
Section 271G: Exceptions: notices and information
Section 271H: Exceptions: criminal offences and penalties etc
Section 271I: Indemnities
Section 271J: Meaning of "non-UK resident" and "independent agent"

Part VIII: Supplemental

Section 272: Valuation: general.
Section 273: Unquoted shares and securities.
Section 274: Value determined for inheritance tax.
Section 275: Location of assets.
Section 275A: Location of certain intangible assets
Section 275B: Section 275A: supplementary provisions
Section 275C: Location of assets: interests of co-owners
Section 276: The territorial sea and the continental shelf.
Section 276A: No gain/no loss: foreign permanent establishment exemption
Section 277: Double taxation relief.
Section 278: Allowance for foreign tax.
Section 279: Foreign assets: delayed remittances.
Section 279A: Deferred unascertainable consideration: election for treatment of loss
Section 279B: Provisions supplementary to section 279A
Section 279C: Effect of election under section 279A
Section 279D: Elections under section 279A
Section 280: Consideration payable by instalments.
Section 281: Payment by instalments of tax on gifts.
Section 282: Recovery of tax from donee.
Section 283: Repayment supplements.
Section 284: Income tax decisions.
Section 284A: Concessions that defer a charge.
Section 284B: Provisions supplementary to section 284A.
Section 285: Recognised investment exchanges.
Section 285A: UK Economic Interest Groupings European Economic Interest Groupings
Section 286: Connected persons: interpretation.
Section 286A: Residence of companies
Section 287: Orders and regulations made by the Treasury or the Board.
Section 288: Interpretation.
Section 289: Commencement.
Section 290: Savings, transitionals, consequential amendments and repeals.
Section 291: Short title.

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This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.