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HMRC internal manual

Capital Gains Manual

HM Revenue & Customs
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Liability to date of death: cessation of use

TCGA92/S154 (2) (b)For gains held-over on the replacement of business assets with depreciating assets, in addition to the recovery of the held-over gain being triggered by a disposal (TCGA92/S154 (2)(a)) the charge is also triggered if the claimant ceases to use the assets (TCGA92/S154 (2)(b)). Such a cessation of use does occur on death. So, strictly, for this class of held-over gains a recovery charge does arise at death even though there is no disposal. But this recovery charge is relieved by an extra statutory concession, see CG30351. The other provisions holding over gains do not contain any corresponding provision and in those cases there is no recovery charge at death.