Taxation of Chargeable Gains Act 1992

[F1 Period for which an asset is held and relevant period of ownership U.K.

Textual Amendments

F1 Sch. A1 inserted (with effect in accordance with s. 121(4) of the amending Act) by Finance Act 1998 (c. 36), s. 121(2), Sch. 20

2 (1) In relation to any gain on the disposal of a business or non-business asset, the period after 5th April 1998 for which the asset had been held at the time of its disposal is the period which— U.K.

(a) begins with whichever is the later of 6th April 1998 and the time when the asset disposed of was acquired by the person making the disposal; and

(b) ends with the time of the disposal on which the gain accrued.

(2) Where an asset is disposed of, its relevant period of ownership is whichever is the shorter of—

(a) the period after 5th April 1998 for which the asset had been held at the time of its disposal; and

(b) the period of ten years ending with that time.

(3) The following shall be disregarded for determining when a person is to be treated for the purposes of this paragraph as having acquired an asset, that is to say—

(a) so much of section 73(1)(b) as treats the asset as acquired at a date before 6th April 1965; and

(b) sections 239(2)(b), 257(2)(b) and 259(2)(b).

(4) Where the period after 5th April 1998 for which an asset had been held at the time of its disposal includes any period which, in accordance with any of paragraphs 10 to 12 below [F2 or paragraph 4 of Schedule 5BA], is a period that does not count for the purposes of taper relief—

(a) the qualifying holding period of the asset shall be treated for the purposes of section 2A as reduced by the length of the period that does not count or, as the case may be, of the aggregate of the periods that do not count; and

(b) the period that does not count or, as the case may be, every such period—

(i) shall be left out of account in computing for the purposes of sub-paragraph (2) above the period of ten years ending with the time of the asset’s disposal; and

(ii) shall be assumed not to be comprised in the asset’s relevant period of ownership.

(5) Sub-paragraphs (1) to (3) above have effect subject to the provisions of paragraphs 13 to 19 below.]

Textual Amendments

F2 Words in Sch. A1 para. 2(4) inserted (27.7.1999) by Finance Act 1999 (c. 16), s. 72(3)(b)