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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Capital sums derived from assets: section 22 (1)(b) TCGA 1992: insurance receipts

Section 22(1)(b) TCGA 1992 deems a disposal when the owner of an asset receives a capital sum, see CG12980, under an insurance policy for the risk of:

  • any kind of damage or injury to assets, or
  • the loss or depreciation of assets.

In certain circumstances, and subject to a claim being made, section 23 TCGA 1992 prevents the receipt of a capital sum within section 22(1)(b) from being treated as an occasion of a disposal where the insurance receipt is applied in restoring a damaged asset or replacing an asset which has been lost or destroyed, see CG15700+.