Taxation of Chargeable Gains Act 1992

[F1 Meaning of “qualifying assets” U.K.

Textual Amendments

F1 Sch. 1A inserted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 14

4 (1) Subject as follows, all of the assets of the company are qualifying assets. U.K.

(2) An asset of the company is not a qualifying asset so far as it is matched to a related party liability.

(3) But an interest in UK land is a qualifying asset of the company even if it is matched to any extent to a related party liability.

(4) An asset of the company is matched to a related party liability if—

(a) the asset consists of a right under a transaction (for example, a right under a loan relationship or derivative contract),

(b) the right entitles the company to require another person to meet a liability arising under the transaction, and

(c) the other person is relevant to the paragraph 3 tracing exercise or is a related party of the company on the day of the disposal.

(5) For the purposes of this paragraph a person is relevant to the paragraph 3 tracing exercise if—

(a) the person has assets that fall to be taken into account in the tracing exercise mentioned in paragraph 3, or

(b) the person has obligations (whether as a trustee or otherwise) in relation to the holding of assets comprised in any trust or other arrangement that fall to be taken into account in that exercise.

(6) Whether, for the purposes of this paragraph, a person is a related party of the company on any day is determined in accordance with the rules in Part 8ZB of CTA 2010 but as if, in section 356OT(4) of that Act, the words “, within the period of 6 months beginning with that day” were omitted.

(7) In this paragraph a liability includes a contingent liability (such as one arising as a result of the giving of a guarantee, indemnity or other form of financial assistance).]