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HMRC internal manual

Capital Gains Manual

TCGA92/Sch4C - attribution of TCGA92/Sch4B gains to beneficiaries - history

TCGA92/Sch4C is part of the anti-avoidance legislation introduced in FA 2000 to tackle flip flop schemes, CG39100+. As originally introduced it provided a mechanism for matching Schedule 4B gains to capital payments received from either the transferor or transferee settlement. Unfortunately it did not deal with any unmatched TCGA92/S87 gains (section 2(2) amounts), CG38570+. This created a new form of flip flop avoidance. This was blocked by FA 2003 so that TCGA92/Sch4C deals with both Schedule 4B gains and any unmatched section 2(2) amounts.

As TCGA92/Sch4C effectively replaces TCGA92/S87 it was amended again when TCGA92/S87 was extensively amended by FA 2008. These later changes were mainly to the mechanics of TCGA92/Sch4C. One change of principle was that TCGA92/Sch4C now applies to all UK resident beneficiaries. There is no longer a requirement that the beneficiary is UK domiciled.