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HMRC internal manual

Capital Gains Manual

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HM Revenue & Customs
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Housing associations: disposals by

TCGA92/S219

The following disposals are treated as no gain/no loss disposals under TCGA92/S219.

  • A disposal of land by the Housing Corporation to a registered housing association.
  • A disposal of land by one relevant housing association to another.
  • A disposal of property other than land by one relevant housing association to another as the result of a direction under Part I of the Housing Associations Act 1985.
  • A disposal of land to the Housing Corporation by either a relevant housing association or an unregistered self-build society.

In addition to the Housing Corporation these rules apply to Housing for Wales and Scottish Homes.

On any of the disposals listed above, no chargeable gain or allowable loss will accrue to the transferor. The transferee will acquire the asset at its cost to the transferor plus indexation allowance (but see CG17730+ where the no gain / no loss transfer occurred on or after 30 November 1993).

Northern Ireland Housing Associations

TCGA92/S220

The following disposals are treated as no gain/no loss disposals under TCGA92/S220.

  • A disposal of land by one registered Northern Ireland Housing Association to another.
  • A disposal of property other than land by one registered Northern Ireland Housing Association to another as a result of a direction under Chapter II of Part VII of the Housing (Northern Ireland) Order 1981.

On either of the disposals listed above, no chargeable gain or allowable loss will accrue to the transferor. The transferee will acquire the asset at its cost to the transferor plus indexation allowance (but see CG17730+ where the no gain / no loss transfer occurred on or after 30 November 1993).

Land held at 6/4/65

If the land or related assets were owned either by the original housing association or by the Housing Corporation at 6 April 1965, any chargeable gain arising on a later disposal by the second housing association should be calculated as if the association and the Housing Corporation were members of a group of companies, see CG45100+.

Land held at 31/3/82

If the land or related assets were owned either by the original housing association or the Housing Corporation at 31 March 1982, any chargeable gain arising on a later disposal by the second housing association should be calculated on the basis that the second housing association owned the asset at 31 March 1982, see CG16880+.

NOTE. If a taxpayer is within the charge to Capital Gains Tax, neither indexation allowance nor taper relief apply to disposals of assets on or after 6 April 2008. Previously indexation allowance had been frozen at April 1998. Companies and other concerns within the charge to Corporation Tax are not affected by these changes. For indexation allowance see CG17207+ and for taper relief see CG17895+.