Commentary

C3.1805 Exempt gains—cash basis for small businesses and property businesses

Capital gains tax
Capital gains tax | Commentary

C3.1805 Exempt gains—cash basis for small businesses and property businesses

Capital gains tax | Commentary

C3.1805 Exempt gains—cash basis for small businesses and property businesses

From 2017/18 a CGT exemption applies for certain disposals under, or after leaving, the cash basis. When a taxpayer enters the cash basis, any capital allowances pool balance is written off and capital allowances are not available while a cash basis election is in force (see B3.333).

No chargeable gain accrues on the disposal of, or of an interest in, an asset used in a cash basis business, but on which capital allowances had previously been claimed, if the following three conditions are met1:

  1.  

    •     The asset is not land.

  2.  

    •     The asset has been used at any time during the period of ownership by the person making the disposal for the

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