Taxation of Chargeable Gains Act 1992

1. Introductory Text

2. Part I Capital gains tax and corporation tax on chargeable gains

   1. General

      1. 1. The charge to tax.

   2. Capital gains tax

      1. 2. Persons and gains chargeable to capital gains tax, and allowable losses.

      2. 3. Annual exempt amount.

      3. 4. Rates of capital gains tax.

      4. 5. Accumulation and discretionary settlements.

      5. 6. Other special cases.

      6. 7. Time for payment of tax.

   3. Corporation tax

      1. 8. Company’s total profits to include chargeable gains.

   4. Residence etc.

      1. 9. Residence, including temporary residence.

      2. 10. Non-resident with United Kingdom branch or agency.

      3. 11. Visiting forces, agents-general etc.

      4. 12. Foreign assets of person with foreign domicile.

      5. 13. Attribution of gains to members of non-resident companies.

      6. 14. Non-resident groups of companies.

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

   1. Chapter I Introductory

      1. 15. Computation of gains.

      2. 16. Computation of losses.

      3. 17. Disposals and acquisitions treated as made at market value.

      4. 18. Transactions between connected persons.

      5. 19. Deemed consideration in certain cases where assets disposed of in a series of transactions.

      6. 20. Original market value and aggregate market value for purposes of section 19.

   2. Chapter II Assets and disposals of assets

      1. General provisions

         1. 21. Assets and disposals.

         2. 22. Disposal where capital sums derived from assets.

         3. 23. Receipt of compensation and insurance money not treated as a disposal.

         4. 24. Disposals where assets lost or destroyed, or become of negligible value.

         5. 25. Non-residents: deemed disposals.

         6. 26. Mortgages and charges not to be treated as disposals.

         7. 27. Disposals in cases of hire-purchase and similar transactions.

         8. 28. Time of disposal and acquisition where asset disposed of under contract.

      2. Value shifting

         1. 29. General provisions.

         2. 30. Tax-free benefits.

         3. 31. Distributions within a group followed by a disposal of shares.

         4. 32. Disposals within a group followed by a disposal of shares.

         5. 33. Provisions supplementary to sections 30 to 32.

         6. 34. Transactions treated as a reorganisation of share capital.

   3. Chapter III Computation of gains: General provisions

      1. Re-basing to 1982, and assets held on 6th April 1965

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

         2. 36. Deferred charges on gains before 31st March 1982.

      2. Allowable deductions

         1. 37. Consideration chargeable to tax on income.

         2. 38. Acquisition and disposal costs etc.

         3. 39. Exclusion of expenditure by reference to tax on income.

         4. 40. Interest charged to capital.

         5. 41. Restriction of losses by reference to capital allowances and renewals allowances.

         6. 42. Part disposals.

         7. 43. Assets derived from other assets.

      3. Wasting assets

         1. 44. Meaning of “wasting asset".

         2. 45. Exemption for certain wasting assets.

         3. 46. Straightline restriction of allowable expenditure.

         4. 47. Wasting assets qualifying for capital allowances.

      4. Miscellaneous provisions

         1. 48. Consideration due after time of disposal.

         2. 49. Contingent liabilities.

         3. 50. Expenditure reimbursed out of public money.

         4. 51. Exemption for winnings and damages etc.

         5. 52. Supplemental.

   4. Chapter IV Computation of gains: the indexation allowance

      1. General

         1. 53. The indexation allowance and interpretative provisions.

         2. 54. Calculation of indexation allowance.

         3. 55. Assets owned on 31st March 1982 or acquired on a no gain/no loss disposal.

         4. 56. Part disposals and disposals on a no-gain/no-loss basis.

         5. 57. Receipts etc. which are not treated as disposals but affect relevant allowable expenditure.

4. Part III Individuals, partnerships, trusts and collective investment schemes

   1. Chapter I Miscellaneous provisions

      1. 58. Husband and wife.

      2. 59. Partnerships.

      3. 60. Nominees and bare trustees.

      4. 61. Funds in court.

      5. 62. Death: general provisions.

      6. 63. Death: application of law in Scotland.

      7. 64. Expenses in administration of estates and trusts.

      8. 65. Liability for tax of trustees or personal representatives.

      9. 66. Insolvents’ assets.

      10. 67. Provisions applicable where section 79 of the Finance Act 1980 has applied.

   2. Chapter II Settlements

      1. General provisions

         1. 68. Meaning of “settled property".

         2. 69. Trustees of settlements.

         3. 70. Transfers into settlement.

         4. 71. Person becoming absolutely entitled to settled property.

         5. 72. Termination of life interest on death of person entitled.

         6. 73. Death of life tenant: exclusion of chargeable gain.

         7. 74. Effect on sections 72 and 73 of relief under section 165 or 260.

         8. 75. Death of annuitant.

         9. 76. Disposal of interests in settled property.

         10. 77. Charge on settlor with interest in settlement.

         11. 78. Right of recovery.

         12. 79. Provisions supplemental to sections 77 and 78.

      2. Migration of settlements, non-resident settlements and dual resident settlements

         1. 80. Trustees ceasing to be resident in U.K.

         2. 81. Death of trustee: special rules.

         3. 82. Past trustees: liability for tax.

         4. 83. Trustees ceasing to be liable to U.K. tax.

         5. 84. Acquisition by dual resident trustees.

         6. 85. Disposal of interests in non-resident settlements.

         7. 86. Attribution of gains to settlors with interest in non-resident or dual resident settlements.

         8. 87. Attribution of gains to beneficiaries.

         9. 88. Gains of dual resident settlements.

         10. 89. Migrant settlements etc.

         11. 90. Transfers between settlements.

         12. 91. Increase in tax payable under section 87 or 89(2).

         13. 92. Qualifying amounts and matching.

         14. 93. Matching: special cases.

         15. 94. Transfers of settled property where qualifying amounts not wholly matched.

         16. 95. Matching after transfer.

         17. 96. Payments by and to companies.

         18. 97. Supplementary provisions.

         19. 98. Power to obtain information for purposes of sections 87 to 90.

   3. Chapter III Collective investment schemes and investment trusts

      1. 99. Application of Act to unit trust schemes.

      2. 100. Exemption for authorised unit trusts etc.

      3. 101. Transfer of company’s assets to investment trust.

      4. 102. Collective investment schemes with property divided into separate parts.

      5. 103. Restriction on availability of indexation allowance.

5. Part IV Shares, securities, options etc.

   1. Chapter I General

      1. Share pooling, identification of securities, and indexation

         1. 104. Share pooling: general interpretative provisions.

         2. 105. Disposal on or before day of acquisition of shares and other unidentified assets.

         3. 106. Disposal of shares and securities by company within prescribed period of acquisition.

         4. 107. i Identification of securities etc: general rules.

         5. 108. Identification of relevant securities.

         6. 109. Pre-April 1982 share pools.

         7. 110. New holdings: indexation allowance.

         8. 111. Indexation: building society etc. shares.

         9. 112. Parallel pooling regulations.

         10. 113. Calls on shares.

         11. 114. Consideration for options.

      2. Gilt-edged securities and qualifying corporate bonds

         1. 115. Exemptions for gilt-edged securities and qualifying corporate bonds etc.

         2. 116. Reorganisations, conversions and reconstructions.

         3. 117. Meaning of “qualifying corporate bond".

      3. Deep discount securities, the accrued income scheme etc.

         1. 118. Amount to be treated as consideration on disposal of deep discount securities etc.

         2. 119. Transfers of securities subject to the accrued income scheme.

         3. 120. Increase in expenditure by reference to tax charged in relation to shares etc.

      4. Savings certificates etc.

         1. 121. Exemption for government non-marketable securities.

      5. Capital distribution in respect of shares etc.

         1. 122. Distribution which is not a new holding within Chapter II.

         2. 123. Disposal of right to acquire shares or debentures.

      6. Close companies

         1. 124. Disposal of shares: relief in respect of income tax consequent on shortfall in distributions.

         2. 125. Shares in close company transferring assets at an undervalue.

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

      1. Reorganisation or reduction of share capital

         1. 126. Application of sections 127 to 131.

         2. 127. Equation of original shares and new holding.

         3. 128. Consideration given or received by holder.

         4. 129. Part disposal of new holding.

         5. 130. Composite new holdings.

         6. 131. Indexation allowance.

      2. Conversion of securities

         1. 132. Equation of converted securities and new holding.

         2. 133. Premiums on conversion of securities.

         3. 134. Compensation stock.

      3. Company reconstructions and amalgamations

         1. 135. Exchange of securities for those in another company.

         2. 136. Reconstruction or amalgamation involving issue of securities.

         3. 137. Restriction on application of sections 135 and 136.

         4. 138. Procedure for clearance in advance.

         5. 138A. Use of earn-out rights for exchange of securities.

         6. 139. Reconstruction or amalgamation involving transfer of business.

         7. 140. Postponement of charge on transfer of assets to non-resident company.

      4. Transfers concerning companies of different member States

         1. 140A. Transfer of a UK trade.

         2. 140B. Section 140A: anti-avoidance.

         3. 140C. Transfer of a non-UK trade.

         4. 140D. Section 140C: anti-avoidance.

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

      1. 141. Stock dividends: consideration for new holding.

      2. 142. Capital gains on certain stock dividends.

      3. 143. Commodity and financial futures and qualifying options.

      4. 144. Options and forfeited deposits.

      5. 145. Call options: indexation allowance.

      6. 146. Options: application of rules as to wasting assets.

      7. 147. Quoted options treated as part of new holdings.

      8. 148. Traded options: closing purchases.

      9. 149. Rights to acquire qualifying shares.

      10. 149A. Approved share option schemes.

      11. 150. Business expansion schemes.

      12. 151. Personal equity plans.

6. Part V Transfer of business assets

   1. Chapter I General provisions

      1. Replacement of business assets

         1. 152. Roll-over relief.

         2. 153. Assets only partly replaced.

         3. 154. New assets which are depreciating assets.

         4. 155. Relevant classes of assets.

         5. 156. Assets of Class 1.

         6. 157. Trade carried on by family company: business assets dealt with by individual.

         7. 158. Activities other than trades, and interpretation.

         8. 159. Non-residents: roll-over relief.

         9. 160. Dual resident companies: roll-over relief.

      2. Stock in trade

         1. 161. Appropriations to and from stock.

      3. Transfer of business to a company

         1. 162. Roll-over relief on transfer of business.

      4. Retirement relief

         1. 163. Relief for disposals by individuals on retirement from family business.

         2. 164. Other retirement relief.

   2. Chapter IA Roll-over relief on Re-investment

      1. 164A. Relief on re-investment for individuals.

      2. 164B. Roll-over relief on re-investment by trustees.

      3. 164C. Restriction applying to retirement relief and roll-over relief on re-investment.

      4. 164D. Relief carried forward into replacement shares.

      5. 164E. Application of Chapter in cases of an exchange of shares.

      6. 164F. Failure of conditions of relief.

      7. 164G. Meaning of “qualifying company".

      8. 164H. Property companies etc. not to be qualifying companies.

      9. 164I. Qualifying trades.

      10. 164J. Provisions supplementary to section 164I.

      11. 164K. Foreign residents.

      12. 164L. Anti-avoidance provisions.

      13. 164M. Exclusion of double relief.

      14. 164N. Interpretation of Chapter IA.

   3. Chapter II Gifts of business assets

      1. 165. Relief for gifts of business assets.

      2. 166. Gifts to non-residents.

      3. 167. Gifts to foreign-controlled companies.

      4. 168. Emigration of donee.

      5. 169. Gifts into dual resident trusts.

7. Part VI Companies, oil, insurance etc.

   1. Chapter I Companies

      1. Groups of companies

         1. 170. Interpretation of sections 171 to 181.

      2. Transactions within groups

         1. 171. Transfers within a group: general provisions.

         2. 172. Transfer of United Kingdom branch or agency.

         3. 173. Transfers within a group: trading stock.

         4. 174. Disposal or acquisition outside a group.

         5. 175. Replacement of business assets by members of a group.

      3. Losses attributable to depreciatory transactions

         1. 176. Depreciatory transactions within a group.

         2. 177. Dividend stripping.

         3. 177A. Restriction on set-off of pre-entry losses.

      4. Companies leaving groups

         1. 178. Company ceasing to be member of group: pre-appointed day cases.

         2. 179. Company ceasing to be member of group: post-appointed day cases.

         3. 180. Transitional provisions.

         4. 181. Exemption from charge under 178 or 179 in the case of certain mergers.

      5. Restriction on indexation allowance for groups and associated companies

         1. 182. Disposals of debts.

         2. 183. Disposals of shares.

         3. 184. Definitions and other provisions supplemental to sections 182 and 183.

      6. Non-resident and dual resident companies

         1. 185. Deemed disposal of assets on company ceasing to be resident in U.K.

         2. 186. Deemed disposal of assets on company ceasing to be liable to U.K. taxation.

         3. 187. Postponement of charge on deemed disposal under section 185 or 186.

         4. 188. Dual resident companies: deemed disposal of certain assets.

      7. Recovery of tax otherwise than from tax-payer company

         1. 189. Capital distribution of chargeable gains: recovery of tax from shareholder.

         2. 190. Tax on one member of group recoverable from another member.

         3. 191. Tax on non-resident company recoverable from another member of group or from controlling director.

      8. Demergers

         1. 192. Tax exempt distributions.

   2. Chapter II Oil and mining industries

      1. Oil exploration and exploitation

         1. 193. Roll-over relief not available for gains on oil licences.

         2. 194. Disposals of oil licences relating to undeveloped areas.

         3. 195. Allowance of certain drilling expenditure etc.

         4. 196. Interpretation of sections 194 and 195.

         5. 197. Disposals of interests in oil fields etc: ring fence provisions.

         6. 198. Replacement of business assets used in connection with oil fields.

         7. 199. Exploration or exploitation assets: deemed disposals

         8. 200. Limitation of losses on disposal of oil industry assets held on 31st March 1982.

      2. Mineral leases

         1. 201. Royalties.

         2. 202. Capital losses.

         3. 203. Provisions supplementary to sections 201 and 202.

   3. Chapter III Insurance

      1. 204. Policies of insurance.

      2. 205. Disallowance of insurance premiums as expenses.

      3. 206. Underwriters.

      4. 207. Disposal of assets in premiums trust fund etc.

      5. 208. Premiums trust funds: indexation.

      6. 209. Interpretation, regulations about underwriters etc.

      7. 210. Life assurance and deferred annuities.

      8. 211. Transfers of business.

      9. 212. Annual deemed disposal of holdings of unit trusts etc.

      10. 213. Spreading of gains and losses under section 212.

      11. 214. Transitional provisions.

      12. 214A. Further transitional provisions.

      13. 214B. Modification of Act in relation to overseas life insurance companies.

   4. Chapter IV Miscellaneous cases

      1. Building societies etc.

         1. 215. Disposal of assets on amalgamation of building societies etc.

         2. 216. Assets transferred from society to company.

         3. 217. Shares, and rights to shares, in successor company.

      2. Friendly societies

         1. 217A. Transfer of assets on incorporation of registered friendly society.

         2. 217B. Rights of members in registered society equated with rights in incorporated society.

         3. 217C. Subsequent disposal of assets by incorporated society etc.

      3. The Housing Corporation, Housing for Wales and housing associations

         1. 218. Disposals of land between the Housing Corporation, Housing for Wales or Scottish Homes and housing associations.

         2. 219. Disposals by Housing Corporation, Housing for Wales, Scottish Homes and certain housing associations.

         3. 220. Disposals by Northern Ireland housing associations.

      4. Other bodies

         1. 221. Harbour authorities.

8. Part VII Other property, businesses, investments etc.

   1. Private residences

      1. 222. Relief on disposal of private residence.

      2. 223. Amount of relief.

      3. 224. Amount of relief: further provisions.

      4. 225. Private residence occupied under terms of settlement.

      5. 226. Private residence occupied by dependent relative before 6th April 1988.

   2. Employee share ownership trusts

      1. 227. Conditions for roll-over relief.

      2. 228. Conditions for relief: supplementary.

      3. 229. The relief.

      4. 230. Dwelling-houses: special provision.

      5. 231. Shares: special provision.

      6. 232. Chargeable event when replacement assets owned.

      7. 233. Chargeable event when replacement property owned.

      8. 234. Chargeable events when bonds owned.

      9. 235. Information.

      10. 236. Prevention of double charge.

   3. Superannuation funds, profit sharing schemes, employee trusts etc.

      1. 237. Superannuation funds, annuities and annual payments.

      2. 238. Approved profit sharing and share option schemes.

      3. 239. Employee trusts.

   4. Leases

      1. 240. Leases of land and other assets.

      2. 241. Furnished holiday lettings.

   5. Part disposals

      1. 242. Small part disposals.

      2. 243. Part disposal to authority with compulsory powers.

      3. 244. Part disposal: consideration exceeding allowable expenditure.

   6. Compulsory acquisition

      1. 245. Compensation paid on compulsory acquisition.

      2. 246. Time of disposal and acquisition.

      3. 247. Roll-over relief on compulsory acquisition.

      4. 248. Provisions supplementary to section 247.

   7. Agricultural land and woodlands

      1. 249. Grants for giving up agricultural land.

      2. 250. Woodlands.

   8. Debts

      1. 251. General provisions.

      2. 252. Foreign currency bank accounts.

      3. 253. Relief for loans to traders.

      4. 254. Relief for debts on qualifying corporate bonds.

      5. 255. Provisions supplementary to section 254.

   9. Charities and gifts of non-business assets etc.

      1. 256. Charities.

      2. 257. Gifts to charities etc.

      3. 258. Works of art etc.

      4. 259. Gifts to housing associations.

      5. 260. Gifts on which inheritance tax is chargeable etc.

      6. 261. Section 260 relief: gifts to non-residents.

   10. Miscellaneous reliefs and exemptions

       1. 262. Chattel exemption.

       2. 263. Passenger vehicles.

       3. 264. Relief for local constituency associations of political parties on reorganisation of constituencies.

       4. 265. Designated international organisations.

       5. 266. Inter-American Development Bank.

       6. 267. Sharing of transmission facilities.

       7. 268. Decorations for valour or gallant conduct.

       8. 269. Foreign currency for personal expenditure.

       9. 270. Chevening Estate.

       10. 271. Other miscellaneous exemptions.

9. Part VIII Supplemental

   1. 272. Valuation: general.

   2. 273. Unquoted shares and securities.

   3. 274. Value determined for inheritance tax.

   4. 275. Location of assets.

   5. 276. The territorial sea and the continental shelf.

   6. 277. Double taxation relief.

   7. 278. Allowance for foreign tax.

   8. 279. Foreign assets: delayed remittances.

   9. 280. Consideration payable by instalments.

   10. 281. Payment by instalments of tax on gifts.

   11. 282. Recovery of tax from donee.

   12. 283. Repayment supplements.

   13. 284. Income tax decisions.

   14. 285. Recognised investment exchanges.

   15. 286. Connected persons: interpretation.

   16. 287. Orders and regulations made by the Treasury or the Board.

   17. 288. Interpretation.

   18. 289. Commencement.

   19. 290. Savings, transitionals, consequential amendments and repeals.

   20. 291. Short title.