22 Disposal where capital sums derived from assets.U.K.
(1)Subject to sections 23 and 26(1), and to any other exceptions in this Act, there is for the purposes of this Act a disposal of assets by their owner where any capital sum is derived from assets notwithstanding that no asset is acquired by the person paying the capital sum, and this subsection applies in particular to—
(a)capital sums received by way of compensation for any kind of damage or injury to assets or for the loss, destruction or dissipation of assets or for any depreciation or risk of depreciation of an asset,
(b)capital sums received under a policy of insurance of the risk of any kind of damage or injury to, or the loss or depreciation of, assets,
(c)capital sums received in return for forfeiture or surrender of rights, or for refraining from exercising rights, and
(d)capital sums received as consideration for use or exploitation of assets.
(2)In the case of a disposal within paragraph (a), (b), (c) or (d) of subsection (1) above, the time of the disposal shall be the time when the capital sum is received as described in that subsection.
(3)In this section “capital sum” means any money or money’s worth which is not excluded from the consideration taken into account in the computation of the gain.
[F1(4)Subsection (1) does not apply where a company receives, or becomes entitled to receive—
(a)a capital distribution within the meaning of section 122 (see instead subsection (1) of that section), or
(b)a distribution to which the charge to corporation tax on income under Part 9A of CTA 2009 (company distributions) applies or would apply were the distribution not exempt for the purposes of that Part.]
Textual Amendments
F1S. 22(4) inserted (with effect in accordance with Sch. 3 paras. 5, 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 3 para. 4(2) (with Sch. 3 para. 6(3))
Modifications etc. (not altering text)
C1S. 22 excluded (27.7.1993) by 1993 c. 37, s. 12, Sch. 2 Pt. I para.17