Capital gains tax | Commentary

C2.821 Exemption

Capital gains tax | Commentary

C2.821 Exemption

A gain arising on the disposal of an asset which, at the time of disposal is a QCB is not a chargeable gain1, and a loss on such a disposal is not an allowable loss2. There is an exception for a loss on a QCB which was a loan to a trader before 17 March 1998; where the loan satisfied certain conditions, the loss could be claimed as an allowable loss3.

The exemption not only applies to qualifying corporate bonds, but also to any option or outstanding obligation under contract to acquire or dispose of them4. Furthermore, the exemption

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