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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Charge on repudiation of concessional relief

TCGA92/S284A & TCGA92/S284B

A chargeable gain arises under TCGA92/S284A (3) when

  • a person has relied on a concession, see CG13656, to get the benefit of a relief, see CG13657, and
  • in a later year of assessment (or accounting period) a person not necessarily the same person, see CG13658 repudiates the previous concessional relief, see CG13658.

Time and amount of chargeable gain

The chargeable gain is an amount equal to the benefit of the relief previously given, see CG13657. It arises when the previous concessional relief is repudiated, provided that the circumstances giving rise to the repudiation normally, the relevant disposal - occurred on or after 9 March 1999, see CG13658. The concessional relief may have been given either before or after that date.

The chargeable gain is treated as a gain of the year of assessment, or accounting period, in which the relevant circumstances occur. It is not eligible for taper relief, see CG17895+, even if any chargeable gain on the relevant asset would be reduced by the taper.


A company’s accounting period ends on 31 December each year. In 1992 it disposes of an asset and uses the sale proceeds to acquire the freehold reversion of its business premises. It claims the benefit of ESC/D25, see CG60410, to roll-over the whole of the gain on the old asset under TCGA92/S152, see CG60250+. Without ESC/D25, a chargeable gain of £25,000 would have arisen.

In 2000 the company disposes of its business premises.

Normally the company would take into account the previous concessional relief in calculating a gain on the disposal in 2000 (by using a reduced base cost). But if it did not do so, it would incur a liability under TCGA92/S284A (3) in the accounting period to 31 December 2000 on a chargeable gain of £25,000, the amount of the relief previously given by concession in 1992.

No excessive charge


In some instances it would be possible for a taxpayer (or more than one taxpayer, see CG13658) to repudiate the benefit of previous concessional relief on more than one occasion. There is no provision for apportioning the Section 284A(3) charge. So the whole of any concessional relief could become chargeable every time the relief was repudiated.

To prevent such excessive recovery of any previous concessional relief, the total amount of the chargeable gains arising under TCGA92/S284A (3) is limited by Section 284B(2) to the amount of the previous relief.


The facts are as in the example above, except that the company disposes of its business premises in two stages, in 2000 and 2001.

If the company ignored the 1992 concessional roll-over relief in calculating its gains in 2000 and 2001, it would incur liability under TCGA92/S284A (3) in respect of the £25,000 relief in both years. So in this case the company would have a chargeable gain of the whole £25,000 in the first accounting period ended 31December 2000. But it would have no further liability in the accounting period ended 31 December 2001 because the full amount of relief had already been charged.

Charge set aside

In certain circumstances a taxpayer who has incurred a chargeable gain under TCGA92/S284A (3) can have it set aside, see CG13659.