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HMRC internal manual

Capital Gains Manual

Rebasing for companies: halving relief for deferred gains pre-31/3/82: claims for relief


Relief under Paragraph 9 of Schedule 4 is available only on the making of a claim. The time limit for such a claim is: within two years of the end of the year of assessment in which the disposal is made (or the gain is treated as accruing) or within such further time as the Board may allow.

Each claim is to be supported by such particulars as are required for the purposes of establishing

  • entitlement to relief, and
  • the amount of the relief due.

Thus the onus of proving the claim is placed on the company. HMRC will not be able to assist in identifying gains that were deferred so long ago.

The time limit is subject to extension to such longer period as the Board may allow. Late claims should be dealt with in accordance with the guidance at CG13750 to CG13810.


TCGA92/SCH4 applies if the following conditions are satisfied

  • the charging of a gain has been postponed under any of the provisions listed in CG17033
  • the gain accrues on the occurrence of an event on or after 6 April 1988
  • the gain is attributable, directly or indirectly, in whole or in part, to the disposal before 6 April 1988 of an asset acquired before 31 March 1982.

Then, subject to a claim being made, see CG17060, the amount of the gain accruing is simply reduced by half. If the gain is directly attributable to the disposal of an asset on or before 31 March 1982 refer to CG17060.

The words `directly or indirectly’ and `in whole or in part’ serve the same purpose as in CG16983.

Assets not held at 31/3/82

TCGA92/SCH4/PARA5 ensures that relief will be available where the postponed charge is attributable in whole or in part to a disposal by a company that did not hold the asset on 31 March 1982 but which acquired it by a specified no gain/no loss transfer from a company that did. The specified no gain/no loss disposals are listed in CG16880, but the one that will be of most continuing relevance will be a transfer within a group, TCGA92/S171 and its forerunners.

An asset is to be regarded as having been acquired by a company before 31 March 1982 if it is derived from an asset which was acquired by it before that day, TCGA92/SCH4/PARA8.

Only one claim

There was a defect in the original legislation because it did not prevent a claim being made under Paragraph 4 if a claim had earlier been made under Paragraph 2. This was rectified in Finance Act 1991 for disposals on or after 19 March 1991. Paragraph 4(4) denies relief where the gain being charged is

  • attributable, directly or indirectly, in whole or in part, to the disposal of an asset on or after 6 April 1988, or
  • would have been less if relief under the Schedule had been claimed on an earlier occasion.

The legislation described above now applies only to charges postponed between 1982 and 1988. For charges postponed before 1982 see CG17060.