Groups: rebasing: no gain/no loss disposals after 31/3/82
TCGA92/SCH3/PARA1The rebasing legislation applies if the person making the disposal on or after 6 April 1988 held the asset on 31 March 1982. A special rule is therefore necessary to give the benefit of rebasing where
- X holds an asset on 31 March 1982
- X subsequently transfers the asset at no gain/no loss to Y
Y disposes of the asset to an unconnected third party on or after 6 April 1988.The provision which achieves this result is TCGA92/SCH3/PARA1. This rule applies where
- a person makes a disposal, other than a no gain/no loss disposal, of an asset acquired after 31 March 1982
- the disposal by which the asset was acquired, and any previous disposal of the asset after 31 March 1982, was a no gain/no loss disposal.If these conditions are met the person making the disposal is treated as having held the asset on 31 March 1982.