Taxation of Chargeable Gains Act 1992

248 Provisions supplementary to section 247.U.K.

(1)Land is excluded from paragraph (c) of subsection (1) of section 247 if—

(a)it is a dwelling-house or part of a dwelling-house (or an interest in or right over a dwelling-house), and

(b)by virtue of, or of any claim under, any provision of sections 222 to 226 the whole or any part of a gain accruing on a disposal of it by the landowner at a material time would not be a chargeable gain;

and for the purposes of this subsection “a material time” means any time during the period of 6 years beginning on the date of the acquisition referred to in the said paragraph (c).

(2)If, at any time during the period of 6 years referred to in subsection (1) above, land which at the beginning of that period was not excluded from section 247(1)(c) by virtue of that subsection becomes so excluded, the amount of any chargeable gain accruing on the disposal of the old land shall be redetermined without regard to any relief previously given under section 247 by reference to the amount or value of the consideration for the acquisition of that land; and all such adjustments of capital gains tax, whether by way of assessment or otherwise, may be made at any time, notwithstanding anything in section 34 of the Management Act (time limit for assessments).

This subsection also applies where the period of 6 years referred to above began before the commencement of this section (and accordingly the references to section 247 include references to section 111A of the 1979 Act).

(3)Where the new land is a depreciating asset, within the meaning of section 154, that section has effect as if—

(a)any reference in subsection (1) or subsection (4) to section 152 or 153 were a reference to subsection (2) or subsection (3) respectively of section 247; and

(b)paragraph (b) of subsection (2) were omitted; and

(c)the reference in subsection (5) to section 152(3) were a reference to that provision as applied by section 247(5).

(4)No claim may be made under section 243 in relation to a transfer which constitutes a disposal in respect of which a claim is made under section 247.

(5)Expressions used in this section have the same meaning as in section 247.