Commentary

C2.612 Election for market value at 6 April 1965

Capital gains tax
Capital gains tax | Commentary

C2.612 Election for market value at 6 April 1965

Capital gains tax | Commentary

C2.612 Election for market value at 6 April 1965

The provisions below only apply to companies (see C2.610).

Where the time apportionment rules apply to the disposal of an asset, the taxpayer may elect to have the amount of the chargeable gain determined instead by reference to the market value of the asset in question at 6 April 19651. The asset is then treated as disposed of and immediately reacquired by the owner at its market value2 on 6 April 19653. An election must be made by notice in writing:

  1.  

    (a)     for individuals or trustees (for disposals before 6 April 2008), by the end of the first anniversary of 31 January following the year of assessment in which the disposal is made. For years before 1996/97, the election had to be made within two years after the end of the year of assessment in which the disposal was made

  2.  

    (b)     for companies, within two years after the end of the accounting period in which the disposal is made; or

  3.  

    (c)     in either case, within such later time as HMRC may by notice allow4

HMRC take the view that where the charge is occasioned by a company leaving the group5, the election must be made within two years after the end of the accounting period in which the company ceased to be a member of the group6. In such cases, HMRC may accept a late election made within three years of the end of the accounting period in which the charge arose where

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