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HMRC internal manual

Capital Gains Manual

Procedure agreed with representatives of insurance agents

In the 1960s a procedure for dealing with changes in `books’ was agreed with the representatives of insurance agents. It simplified and reduced the number of computations of chargeable gains arising on disposals or part-disposals of `books’. This procedure is described below and at CG69113 - CG69118.

The procedure was agreed in the early days of Capital Gains Tax. Subsequently, indexation allowance was introduced and then rebasing. The following instructions suggest how you can adapt the simplified scheme to take account of these later provisions.

The agent’s `book’ is a single asset. Acquisitions increase the cost of the `book’ and `small’ disposals are deducted from cost. A capital gains computation is necessary only if a `large’ disposal takes place.