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HMRC internal manual

Capital Gains Manual

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HM Revenue & Customs
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Liability to date of death: cessation of use: ESC D45 (withdrawn)

In order to prevent the recovery charge on cessation of use referred to in CG30350 arising on death an extra statutory concession was issued in a Press Release of 16 December 1993.This reads as follows.

`ROLL-OVER INTO DEPRECIATING ASSETS

The cessation of use of an asset for the purposes of a trade carried on by a claimant to roll-over relief will not be treated as an occasion of charge to Capital Gains Tax under TCGA92/S154 (2)(b) where the cessation occurs on the death of the claimant.’

HMRC’s view is that the legislation achieves this intent without the need for this ESC.  ESC D45 will therefore be withdrawn with effect from 1 April 2016.  This does not signify a change in HMRC’s view.