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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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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.