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HMRC internal manual

Capital Gains Manual

Claims and elections: introduction

This guidance explains, in the context of claims and elections made under the Capital Gains Tax legislation and related Extra Statutory Concessions,

  • the distinction between a claim and an election, see CG13720
  • the time limits, and extended time limits, which apply for making claims and elections, see CG13750 and CG13751
  • how to deal with late claims and elections, see CG13800 and CG13810
  • what to do if someone wants to withdraw an irrevocable election, see CG13850.

The function of most claims is to enable a specific relief to be given to the customer making the claim, and in a specific amount which the customer has to specify in the claim. Some claims are not for a relief but result in the legislation having effect in a particular way (i.e. negligible value claims under TCGA92/S24 (2)).

Relief is given by a process of arithmetical deduction, which will be reflected either in a lower figure of chargeable gains, or of tax payable, or in a repayment of tax. A claim for relief is therefore directly related to the amount of the claimant’s liability to tax: its purpose is to reduce that amount.

An election is generally concerned with the basis of assessment or computation, not with the amount. Once a valid election has been made it provides the basis on which the customer’s chargeable gains and allowable losses are calculated.