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HMRC internal manual

Capital Gains Manual

Concessional relief

TCGA92/S284A (1), TCGA92/S284A (4) & TCGA92/S284A (5)

The concession must give the taxpayer the benefit of a capital gains relief which was not due by statute. `Relief’ here means any reduction in the amount of the taxpayer’s chargeable gains from what it would have been without the concession. The amount of the benefit of the relief is the amount of that reduction. See the first example in CG13655. The relief may take the form of a statutory relief, such as roll-over relief, see CG60250+. Examples of concessions which are therefore within the scope of the legislation are

  • ESC/D15, see CG60280, which allows roll-over relief which would not otherwise be due
  • ESC/D32, see CG65745, which allows relief under TCGA92/S162.

Other concessions do not allow a capital gains relief as such. However they are also caught if they do actually give effective relief from a capital gains charge by

  • treating an asset as the same as another asset, acquired as the other asset was acquired, or
  • treating two or more assets as a single asset, or
  • treating a disposal as giving rise to no gain/no loss.

Examples of such concessions are

  • ESC/D39, see CG71240 - CG71243, which treats the surrender of an existing lease and the grant of a new extended lease as involving neither a disposal of the old lease, nor any separate acquisition of the new lease
  • SP10/84, see CG78325, which allows certain foreign currency bank accounts to be treated as one account (for periods to 5 April 2012).