Taxation of Chargeable Gains Act 1992 Schedule A1 paragraph 16

Special rules for postponed gains

Paragraph 16 of Schedule A1 sets out the special rules that apply when a chargeable gain has been postponed (deferred) and subsequently comes back into charge, particularly in the context of taper relief calculations.

• When a previously postponed gain comes back into charge, special rules determine how taper relief applies to that gain.
• The gain is treated as accruing at the time the postponement ends, but the taper relief qualifying period may be calculated by reference to the original disposal date.
• These rules ensure that the period of deferral does not artificially extend or reduce the taper relief available on the gain.
• The provisions were amended by Finance Act 2008, Schedule 2, paragraph 45, reflecting wider changes to the capital gains tax regime.