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HMRC internal manual

Capital Gains Manual

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HM Revenue & Customs
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Roll-over relief: consideration deemed to be given

TCGA92/S152 (10)

Section 152 (10) provides that provisions which fix the amount of consideration deemed to be given for acquisition or disposal of an asset are to be applied before computing roll-over relief. For example, where the transaction is between connected persons, the consideration is deemed to be the market value of the asset. Similarly, where the transaction is between members of a group of companies, the consideration is deemed to be such an amount as will give neither a gain nor a loss to the person making the disposal. The gain or cost of acquisition should first be computed in the normal way and then the provisions of roll-over relief should be applied.

Relief is not, however, available on deemed disposals under TCGA92/S179 (3), see CG45400+. Roll-over relief is not due where a provision deems both a disposal and a re-acquisition of the same asset. Note that for gains accruing under the degrouping charge from 1 April 2002 to 18 July 2011 it was possible to obtain roll-over relief by way of TCGA92/S179B, see CG45470.

Relief may be due, if the other conditions are met, if a qualifying asset is deemed to be disposed of or deemed to be acquired. For example, gains accruing from the deemed disposal of qualifying assets under the following provisions can be rolled over

  • TCGA92/S22 when a capital sum is derived from an asset
  • TCGA92/S161 when an asset is appropriated to trading stock.

Similarly a deemed acquisition of a qualifying asset, for example under TCGA92/S62 when a person acquires an asset as a legatee, can be part of a claim to roll-over relief.