Taxation of Chargeable Gains Act 1992 Schedule 2 paragraph 17

Election for valuation at 6th April 1965

Section 17 allows a person disposing of an asset held since before 6 April 1965 to elect for the gain or loss to be calculated by reference to the asset's market value on that date, instead of using the time-apportionment method, subject to certain restrictions and time limits.

• A taxpayer may elect to replace the time-apportionment basis with a deemed sale and reacquisition at market value on 6 April 1965, so that only the post-1965 gain or loss is brought into charge.
• If the election would produce a loss that is larger than the loss calculated without the election, the election is overridden; and if the election would turn an actual gain into a loss, the disposal is treated as producing neither a gain nor a loss.
• The election must be made in writing to HMRC within two years of the end of the accounting period in which the disposal occurs, or within any extended period HMRC allows, and once made it is irrevocable.
• No election may be made where the market value of the asset has already been determined under the part-disposal rules at a date on or after 6 April 1965 but before the disposal to which the election would relate.