Taxation of Chargeable Gains Act 1992 section 236

Prevention of double charge

Section 236 prevents a double tax charge arising where a gain that was previously rolled over under the compulsory acquisition provisions is later brought back into charge, by restricting further roll-over relief and reducing any overlapping charges on qualifying corporate bonds.

• Where a rolled-over gain under section 229 is brought back into charge under section 232 or 233, the portion of that gain so charged cannot be rolled over again under the replacement of business assets rules (sections 152 to 158).
• The portion of the gain treated as charged is determined on a just and reasonable basis.
• Where section 234 has applied to qualifying corporate bonds and a subsequent disposal triggers a deemed gain under section 116(10)(b), that gain is reduced by the relevant amount already charged under section 234, or reduced to nil if the section 234 amount exceeds the gain.
• If only some of the bonds are disposed of, the relevant amount used to reduce the gain is apportioned accordingly.