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Taxation of Chargeable Gains Act 1992

Taxation of Chargeable Gains Act 1992

1992 c. 12 · 764 provisionsView on legislation.gov.uk

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

Earl Cadogan (Appellant) v Pitts and another (Respondents) and one other action; Earl Cadogan and others (Appellants) v Sportelli and another (Respondents) and two other actions [2008] UKHL 71
Futter and another (Appellants) v The Commissioners for Her Majesty's Revenue and Customs (Respondent); Pitt and another (Appellants) v The Commissioners for Her Majesty's Revenue and Customs (Respondent) [2013] UKSC 26

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.

Taxation of Chargeable Gains Act 1992

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