Taxation of Chargeable Gains Act 1992

Previous no gain/no loss disposals U.K.

1 (1) [F1 For the purposes of corporation tax, where—] U.K.

(a) a person makes a disposal, not being a no gain/no loss disposal, of an asset which [F2 the person] acquired after 31st March 1982, and

(b) the disposal by which [F2 the person] acquired the asset and any previous disposal of the asset after 31st March 1982 was a no gain/no loss disposal,

[F2 the person] shall be treated for the purposes of section 35 as having held the asset on 31st March 1982.

(2) For the purposes of this paragraph a no gain/no loss disposal is one on which by virtue of any of the [F3 no gain/no loss provisions] [F4 or any of sections 195B, 195C or 195E] neither a gain nor a loss accrues to the person making the disposal.

Textual Amendments

F1 Words in Sch. 3 para. 1(1) substituted (with effect in accordance with Sch. 2 para. 71 of the amending Act) by Finance Act 2008 (c. 9), Sch. 2 para. 65(2)(a)(i)

F2 Words in Sch. 3 para. 1(1) substituted (with effect in accordance with Sch. 2 para. 71 of the amending Act) by Finance Act 2008 (c. 9), Sch. 2 para. 65(2)(a)(ii)

F3 Words in Sch. 3 para. 1(2) substituted (with effect in accordance with Sch. 2 para. 71 of the amending Act) by Finance Act 2008 (c. 9), Sch. 2 para. 65(2)(b)

F4 Words in Sch. 3 para. 1(2) inserted (with effect in accordance with Sch. 40 para. 8 of the amending Act) by Finance Act 2009 (c. 10), Sch. 40 para. 7

[F5 1A. (1) This paragraph applies where— U.K.

(a) paragraph 1(1) applies to a disposal of shares in or securities of a company that are of a class,

(b) accordingly, the shares or securities constitute or form part of a holding which the person making the disposal (“P”) is treated as having held on 31st March 1982 (“the deemed 1982 holding”),

(c) the disposal by which P acquired the shares or securities, and any previous disposal of them after 31st March 1982, was a disposal to which section 171(1) (transfers within a group) applied,

(d) some or all of the shares or securities constituting the deemed 1982 holding were in fact held on 31st March 1982 by a person other than P, and

(e) in the hands of that person on that date they formed part of a holding which—

(i) consisted of shares or securities of the same class as the shares or securities disposed of, and

(ii) was larger than the deemed 1982 holding.

(2) If P makes a claim, then for the purposes of section 35(2) the market value on 31st March 1982 of the shares or securities disposed of is to be treated as being—

where—

• VLH is the market value on 31st March 1982 of the larger holding mentioned in sub-paragraph (1)(e) (in the hands of the person who in fact held it on that date),

• NDO is the number of shares or securities disposed of, and

• NLH is the number of shares or securities comprised in the larger holding on that date.

(3) Sub-paragraph (4) applies where sub-paragraph (1)(d) and (e) are met by two or more persons holding the shares or securities as two or more holdings or parts of holdings (“the original holdings”).

(4) Sub-paragraph (2) applies for the purpose of calculating the market value on 31st March 1982 of the shares or securities disposed of, except that—

(a) VLH is the market value on 31st March 1982 of the largest of the original holdings, and

(b) NLH is the number of shares or securities comprised in that holding.

(5) A claim under sub-paragraph (2) must be made on or before the second anniversary of the end of the accounting period of P in which the disposal takes place.

(6) Shares in or securities of a company shall not be treated as being of the same class unless they are so treated by the practice of a recognised stock exchange or would be so treated if dealt with on a recognised stock exchange.]

Textual Amendments

F5 Sch. 3 para. 1A inserted (with effect in accordance with art. 7(4) of the amending S.I.) by The Enactment of Extra-Statutory Concessions Order 2010 (S.I. 2010/157), arts. 1, 7(3)

2 (1) Sub-paragraph (2) below applies where a person makes a disposal of an asset acquired by him on or after 6th April 1988 in circumstances in which section F6 ... 171 applied. U.K.

(2) Where this sub-paragraph applies—

(a) an election under section 35(5) by the person making the disposal shall not cover the disposal, but

(b) the making of such an election by the person from whom the asset was acquired shall cause the disposal to fall outside subsection (3) of that section (so that subsection (2) of that section is not excluded by it) whether or not the person making the disposal makes such an election.

(3) Where the person from whom the asset was acquired by the person making the disposal himself acquired it on or after 6th April 1988 in circumstances in which section F7 ... 171 applied, an election made by him shall not have the effect described in sub-paragraph (2)(b) above but an election made by—

(a) the last person by whom the asset was acquired after 5th April 1988 otherwise than in such circumstances, or

(b) if there is no such person, the person who held the asset on 5th April 1988,

shall have that effect.

Textual Amendments

F6 Words in Sch. 3 para. 2(1) omitted (with effect in accordance with Sch. 2 para. 71 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 2 para. 65(3)

F7 Words in Sch. 3 para. 2(3) omitted (with effect in accordance with Sch. 2 para. 71 of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 2 para. 65(3)