Commentary

C2.607 Prior no gain/no loss disposals

Capital gains tax
Capital gains tax | Commentary

C2.607 Prior no gain/no loss disposals

Capital gains tax | Commentary

C2.607 Prior no gain/no loss disposals

Where the ownership of an asset was last transferred before 1 April 1982 by means of a defined no gain/no loss transaction1 before the disposal in question, the rebasing provisions apply in the normal way and no adjustment is required to the consideration deemed to have been given for the asset.

Where, for capital gains tax purposes (but not for corporation tax purposes), there is a disposal of an asset on or after 6 April 2008 and:

  1.  

    (a)     it was acquired between 31 March 1982 and 5 April 2008 by way of a no gain/no loss transfer (the relevant transfer); and

  2.  

    (b)     any other disposal and acquisition of the asset between those dates was also a no gain/no loss transfer; and

  3.  

    (c)     rebasing did not apply to the relevant transfer because the person who held the asset at 31 March 1982 had not made an election to rebase all his assets,

then in computing the gain or loss on the disposal on or after 6 April 2008, the allowable expenditure includes the value of the asset at 31 March 1982 and the indexation allowance due for the period from 31 March 1982 to the date on which the person making the post–6 April disposal acquired the asset2.

By contrast for corporation tax purposes where the ownership of an asset has been transferred after 31 March 1982 by defined no gain/no loss transactions, and the first disposal of the asset since that date other than by way of

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