UK Act of Parliament 1992 United Kingdom

Taxation of Chargeable Gains Act 1992

What this means for your business

3 obligations
9 guides
Enforced by
HMRC
Applies to
United Kingdom
On this page
3 compliance obligations, 9 practical guides across 4 topics
Read full text on legislation.gov.uk

What you must do

3 compliance obligations under this legislation.

Management duties 1

Discharge tax obligations of nonā€‘UK resident as UK representative

If your business acts as a UK representative for a foreign individual or company, you must treat any chargeable gains tax duties that the foreign party would have as your own. This means you need to make sure any required CGT returns are filed, taxes are paid and any other tax liabilities are met on their behalf.

Any Person s.271F HMRC When acting as a UK representative of a nonā€‘UK resident for chargeable ā€¦

Reporting and filing 2

Claim relief to avoid double taxation on carried interest

If you have paid Capital Gains Tax on a carriedā€‘interest gain and you (or another person) have also paid income tax on the same gain, you can ask HMRC to adjust the CGT so youā€™re not taxed twice. You need to submit a claim for a consequential adjustment and provide proof of the tax already paid.

Any Person s.103KE HMRC When you are charged CGT on a carriedā€‘interest gain and income tax ā€¦

Claim tax relief for double taxation on carried interest

If you have elected to treat carriedā€‘interest gains as accruing under s.103KFA, have paid CGT on those gains and later are taxed on the same carried interest, you can ask HMRC to reduce the later tax. You must submit a claim for a ā€œconsequential adjustmentā€ to avoid being taxed twice on the same amount.

Any Person s.103KFC HMRC You have (a) made the election under s.103KFA, (b) accrued a chargeable ā€¦

Practical guidance

Our guides explain how to comply with the requirements above.

Sections and provisions

500 classified provisions from this legislation.

3 Duties 1 Offences and penalties 10 Powers 144 Definitions 116 Exemptions

Duties 3

  • s.103KE Carried interest: avoidance of double taxation
  • s.103KFC Interaction with other charges
  • s.271F Obligations and liabilities of UK representative

Offences and penalties 1

  • s.271H Exceptions: criminal offences and penalties etc

Powers 10

  • s.98 Power to obtain information for purposes of sections 87 to 90.
  • s.103KFA Election for carried interest gains to be chargeable as scheme profits arise
  • s.151G Regulations where non-qualifying shares conditions altered
  • s.179ZA Claim for adjustment of calculations under section 179
  • s.261B Treating trade loss etc as CGT loss
  • s.261D Treating excess post-cessation trade or property relief as CGT loss
  • s.263G Power to modify repo provisions: redemption arrangements
  • s.263I Powers about manufactured overseas dividends
  • s.279A Deferred unascertainable consideration: election for treatment of loss
  • Schedule 4B Transfers of value by trustees linked with trustee borrowing

Definitions 144

  • s.2E References to income tax or Income Tax Acts in case of companies the CGT enactments
  • s.3D Individuals who were non-UK domiciled
  • s.3E Temporary non-residents
  • Schedule 7 Relief for gifts of business assets
  • s.13A Section 13(5): interpretation
  • s.16 Computation of losses.
  • s.20 Original market value and aggregate market value for purposes of section 19.
  • s.24A Structures and buildings contributions allowances: destruction of asset
  • s.25A Long funding leases of plant or machinery: deemed disposals
  • s.26 Mortgages and charges not to be treated as disposals.
  • s.26A Transfers in respect of dormant assets
  • s.37A Consideration on disposal of certain leases
  • s.54 Calculation of indexation allowance.
  • s.57 Receipts etc. which are not treated as disposals but affect relevant allowable expenditure.
  • s.65 Liability for tax of trustees or personal representatives.
  • s.69 Trustees of settlements.
  • s.71 Person becoming absolutely entitled to settled property.
  • s.72 Termination of life interest on death of person entitled.
  • s.83A Trustees both resident and non-resident in a year of assessment
  • s.97A Value of benefit conferred by capital payment made by way of loan
  • ... and 124 more definitions

Exemptions 116

  • s.2C Non-UK resident company with UK permanent establishment
  • Schedule 2 Assets held on 6th April 1965
  • s.3B Participators and their interests
  • s.18 Transactions between connected persons.
  • s.22 Disposal where capital sums derived from assets.
  • s.23 Receipt of compensation and insurance money not treated as a disposal.
  • s.35 Assets held on 31st March 1982 (including assets held on 6th April 1965).
  • s.40 Interest charged to capital.
  • s.41 Restriction of losses by reference to capital allowances and renewals allowances.
  • s.45 Exemption for certain wasting assets.
  • s.47A Exemption for certain disposals under, or after leaving, cash basis
  • s.48 Consideration due after time of disposal.
  • s.50 Expenditure reimbursed out of public money.
  • s.53 The indexation allowance and interpretative provisions.
  • s.58 Spouses and civil partners.
  • s.66 Insolventsā€™ assets.
  • s.67 Provisions applicable where section 79 of the Finance Act 1980 has applied.
  • s.68C Variation of will or intestacy, etc: identification of settlor
  • s.74 Effect on sections 72 and 73 of relief under section 165 or 260.
  • s.76 Disposal of interests in settled property.
  • ... and 96 more exemptions

Official guidance

Authoritative sources from regulators explaining this legislation.