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HMRC internal manual

Capital Gains Manual

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HM Revenue & Customs
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Rebasing: deferred charges: gains pre-31/3/82: list of provisions

The legislation deals with the two types of relief given separately.

TCGA92/SCH4/PARA2 (5)

For disposals from 6 April 2008 halving relief only applies for corporation tax purposes and is limited to the following rolled-over and held-over gains -

  • TCGA92/S23 (4), (5); previously CGTA79/S21 (4), (5). Roll-over where replacement asset acquired after receipt of compensation or insurance money.
  • TCGA92/S152; previously CGTA79/S115. Roll-over where replacement asset acquired on disposal of business asset.
  • TCGA92/S247; previously CGTA79/S111A. Roll-over where replacement land acquired on compulsory acquisition of other land.

TCGA92/SCH4/PARA4 (2)

For disposals from 6 April 2008 halving relief only applies for corporation tax purposes and is limited to the following postponed gains -

  • TCGA92/S116 (10), (11); previously FA84/SCH13/PARA10. Postponement of charge on reorganisation etc involving acquisition of qualifying corporate bonds.
  • TCGA92/S134; previously CGTA79/S84. Postponement of charge where gilts acquired on compulsory acquisition of shares.
  • TCGA92/S140; previously ICTA70/S268A. Postponement of charge where securities acquired in exchange for business acquired by non-resident company.
  • TCGA92/S154 (2); previously CGTA79/S117(2). Postponement of charge where depreciating asset acquired as replacement for business asset.
  • TCGA92/S248 (3); CGTA79/S111B (3) (postponement of charge where depreciating asset acquired on compulsory acquisition of land).

TCGA92/SCH4/PARA3

There is a special rule for certain cases involving roll-over into depreciating assets

Relief under Paragraph 2 is not available if the asset being disposed of was acquired on or after 19 March 1991 and the gain involved includes a gain which was originally held over because the proceeds of sale had been applied in acquired a depreciating asset. Instead, where, subsequently the roll-over relief claim is transferred to a non-depreciating asset, that is the asset being disposed of, Paragraph 3 gives relief of half the gain originally deferred under CGTA79/S117 (2) rather than the full amount of the deferred gain if greater.