Capital Gains and other taxes manual

Appendix 17: statutory background of CGT

The Valuation Office Agency's (VOA) technical manual used to assess Capital Gains and other taxes.

CGT was first introduced by the Finance Act 1965, consolidated in the Capital Gains Tax Act 1979 then consolidated again in the Taxation of Chargeable Gains Act 1992.

It is useful in order to avoid confusion in correspondence and essential in preparation of documents for the Lands Tribunal, for the DV to be aware which of the above statutes applies to the cases in hand.

The Taxation of Chargeable Gains Act 1992 affects only disposals occurring after 5 April 1992 where the tax is calculated by reference to years of assessment, or, if the taxpayer is a company or other body or person subject to corporation tax, occurring during an accounting period beginning after 5 April 1992.

The Capital Gains Tax Act 1979 and the Finance Act 1965 affects disposals before these dates.

The basis of valuation provisions contained in s.272 TCGA 1992 are essentially the same as those previously contained in s.150 CGTA 1979 and s.44 FA 1965. The matter is therefore one of correct identification.

In cases of doubt the Inspector or Solicitor will advise on the statutory provisions affecting a particular case.