Commentary

C2.501 Assets lost or destroyed

Capital gains tax
Capital gains tax | Commentary

C2.501 Assets lost or destroyed

Capital gains tax | Commentary

Division C2.5     Compensation and insurance receipts

For updates affecting this Division please see Part C0 Updates

CGT treatment of compensation and insurance receipts

C2.501 Assets lost or destroyed

The receipt of compensation or insurance proceeds in respect of the entire loss, destruction or extinguishment of an asset is a disposal for capital gains tax purposes1. However, because the occasion of the loss etc is in itself deemed to be a disposal of the asset2, a possible analysis of the receipt of compensation or insurance moneys is that it is a disposal, not of the original asset but of the right to

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