Statement of Practice 1 (1989)
Published 1 February 1989
© Crown copyright 1989
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Rebasing
The Commissioners for HM Revenue and Customs (HMRC) have agreed that a disposal of a share of partnership assets to which paragraph 4 of the Statement of Practice D12 applies so that neither a chargeable gain nor an allowable loss accrues (before indexation, for disposals before 6 April 1988), may be treated for the purposes of TCGA 1992 s 35, Sch 3 as if it were a no gain/no loss disposal within TCGA 1992 Sch 3 para 1.
Deferred charges
A disposal of a share of partnership assets to which paragraph 4 of the Statement of Practice D12 applies so that neither a chargeable gain nor an allowable loss accrues (before indexation, for disposals before 6 April 1988) may be treated for the purposes of TCGA 1992 s 36, Sch 4 as if it were a no gain/no loss disposal within TCGA 1992 Sch 3 para 1.
Indexation
When, on or after 6 April 1988, a partner disposes of all or part of his share of partnership assets in circumstances to which paragraph 4 of the Statement of Practice D12 applies so that neither a chargeable gain nor an allowable loss accrues, the amount of the consideration will be calculated on the assumption that an unindexed gain will accrue to the transferor equal to the indexation allowance, so that after taking account of the indexation allowance, neither a gain nor a loss accrues.
Where a partner disposes on or after 6 April 1988 of all or part of his share of partnership assets, and he is treated by virtue of this statement as having owned the share on 31 March 1982, the indexation allowance on the disposal may be computed as if he had acquired the share on 31 March 1982. A disposal of a share in a partnership asset on or after 31 March 1982 to which paragraph 4 of the Statement of Practice D12 applies so that neither a chargeable gain nor an allowable loss accrues may be treated for the purposes of TCGA 1992 s 55(5) as if it were a no gain/no loss disposal within TCGA 1992 s 55(5). A special rule will however apply where the share changed hands on or after 6 April 1985 (1 April in the case of an acquisition from a company) and before 6 April 1988 - in these circumstances the indexation allowance will be computed by reference to the 31 March 1982 value but from the date of the last disposal of the share before 6 April 1988.
Statements of Practice D12 and 1/79
Capital Gains Tax: partnerships.
Revenue interpretation RI 9
Rebasing elections: assets held by the same person in different capacities.
Press releases etc
HMRC Brief 9/09, 20 March 2009 (for disposals of interests in partnership assets that occur on or after 6 April 2008 Statement of Practice 1/89 will apply only in relation to corporate partners whose capital gains are chargeable to Corporation Tax.)
Note
This statement is as it appears in HMRC’s Statements of Practice (March 2009).