CG46305 - Groups: rebasing: no gain, no loss disposals after 31 March 1982
Paragraph 1 of Schedule 3 to the Taxation of Chargeable Gains Act (TCGA) 1992
The rebasing legislation applies if the person making the disposal on or after 6 April 1988 held the asset on 31 March 1982. A special rule is therefore necessary to give the benefit of rebasing where
- X holds an asset on 31 March 1982
- X subsequently transfers the asset at no gain, no loss to Y
- Y disposes of the asset to an unconnected third party on or after 6 April 1988.
The provision which achieves this result is . This rule applies where
- a person makes a disposal, other than a no gain, no loss disposal, of an asset acquired after 31 March 1982
- the disposal by which the asset was acquired, and any previous disposal of the asset after 31 March 1982, was a no gain, no loss disposal.
If these conditions are met the person making the disposal is treated as having held the asset on 31 March 1982.
For the purposes of this rule a no gain, no loss disposal is a disposal under any of the capital gains provisions giving no gain/no loss treatment listed in . The list includes
- (transfer of business on reconstruction or amalgamation, see CG52800+)
- (intra-group asset transfers, see CG45305+)
- (inward domestication within a worldwide group.
Company A acquires an asset in 1981 and transfers the asset to group company B in 1985 at no gain, no loss under . Company B disposes of the asset to an unconnected third party in 1992. For rebasing purposes company B is treated as having held the asset on 31 March 1982.