Section 35: Assets held on 31st March 1982 (including assets held on 6th April 1965)., Taxation of Chargeable Gains Act 1992

This section applies to a disposal of an asset which was held on 31st March 1982 by the person making the disposal.

In computing for the purpose of this Act the gain or loss accruing on the disposal it shall be assumed that the asset was on 31st March 1982 sold by the person making the disposal, and immediately reacquired by that person, at its market value on that date.

For the purposes of corporation tax, subsection (2) above has effect subject to subsections (3) to (8) below (and see also subsections (9) and (10)).

Subject to subsection (5) below, subsection (2) above shall not apply to a disposal—

where a gain would accrue on the disposal to the person making the disposal if that subsection did apply, and either a smaller gain or a loss would so accrue if it did not,

where a loss would so accrue if that subsection did apply, and either a smaller loss or a gain would accrue if it did not,

where, either on the facts of the case or by virtue of Schedule 2, neither a gain nor a loss would accrue if that subsection did not apply, ...

where, by virtue of section 195B, 195C or 195E, neither a gain nor a loss accrues to the person making the disposal, or

where neither a gain nor a loss would accrue by virtue of any of the no gain/no loss provisions.

Where in the case of a disposal of an asset—

the effect of subsection (2) above would be to substitute a loss for a gain or a gain for a loss, but

the application of subsection (2) is excluded by subsection (3),

it shall be assumed in relation to the disposal that the asset was acquired by the person making the disposal for a consideration such that, on the disposal, neither a gain nor a loss accrues to that person.

If a person so elects, disposals made by that person (including any made by that person before the election) shall fall outside subsection (3) above (so that subsection (2) above is not excluded by that subsection).

An election by a person under subsection (5) above shall be irrevocable and shall be made by notice to an officer of the Board at any time before 6th April 1990 or at any time during the period beginning with the day of the first relevant disposal and ending—

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

... 2 years after the end of the accounting period in which the disposal is made; or

... at such later time as the Board may allow;

and "the first relevant disposal" means the first disposal to which this section applies which is made by the person making the election.

An election made by a person under subsection (5) above in one capacity does not cover disposals made by that person in another capacity.

All such adjustments shall be made, whether by way of discharge or repayment of tax, the making of assessments or otherwise, as are required to give effect to an election under subsection (5) above.

Schedule 2 shall have effect for the purposes of corporation tax in relation to disposals of assets owned on 6th April 1965 in cases where neither subsection (2) nor subsection (4) above applies.

Schedule 3, which contains provisions supplementary to subsections (1) to (8) above, shall have effect for the purposes of capital gains tax and corporation tax.

Section 35: Assets held on 31st March 1982 (including assets held on 6th April 1965).

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