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Section 124: New identification rules for CGT.

Finance Act 1998 · 1998 c. 36View on legislation.gov.uk

Part III: Income Tax, Corporation Tax and Capital Gains Tax — Chapter II: Taxation of Chargeable Gains

After section 106 of the Taxation of Chargeable Gains Act 1992 there shall be inserted the following section—

In subsection (1) of section 105 of that Act (disposal and acquisition on the same day), for "The following provisions" there shall be substituted ; and for subsection (2) of that section there shall be substituted the following subsection—" Paragraphs (a) and (b) below "

In section 107 of that Act (general identification rules) for subsections (1) and (2) there shall be substituted the following subsections—

In section 108 of that Act (relevant securities), at the beginning there shall be inserted the following subsection—

In that section—

in subsections (2) and (7), for "person", in each place where it occurs, there shall be substituted ; and" company "
in subsection (2), for "him" and "he" there shall be substituted, respectively, and ." the company "" it "

In each of section 151B(1) and (7) of that Act and paragraph 4(2) of Schedule 5C to that Act (disapplication of share pooling and identification rules in relation to shares in a VCT), for "107" there shall be substituted ." 106A "

Subject to subsection (8) below, the preceding provisions of this section have effect in relation to any disposal on or after 6th April 1998.

For the purposes of capital gains tax for the year 1997-98 (but not for the purposes of corporation tax), the following provisions have effect in relation to any disposal of securities made on or after 17th March 1998 and before 6th April 1998, that is to say—

the identification rule in subsection (5) of the section 106A of the Taxation of Chargeable Gains Act 1992 set out in subsection (1) above shall apply in accordance with subsections (3) and (4) of that section;
that rule shall have priority over any other rule, except the one in section 105(1) of that Act; and
section 104(1) of that Act shall not apply to any securities identified by virtue of this subsection with the securities disposed of.

In subsection (8) above "securities" means any securities within the meaning of section 104 of the Taxation of Chargeable Gains Act 1992 or any relevant securities within the meaning of section 108 of that Act.

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