Taxation of Chargeable Gains Act 1992 Schedule A1 paragraph 2

Period for which an asset is held and relevant period of ownership

Schedule A1 paragraph 2 defines how to determine the period for which an asset is held and establishes the concept of the "relevant period of ownership" for the purposes of taper relief calculations.

• The period for which an asset is held begins on the date the expenditure qualifying for the asset's base cost is first incurred, or 6 April 1998 if later, and ends on the date of disposal.
• The "relevant period of ownership" is the portion of the holding period that falls on or after 6 April 1998, which is the date from which taper relief can begin to accrue.
• Where an asset was acquired before 6 April 1998, a bonus year may be added to the holding period for taper relief purposes, subject to certain conditions, effectively giving credit for part of the pre-April 1998 ownership.
• Special rules apply to assets acquired by way of a no-gain/no-loss transfer, where the transferee inherits the transferor's acquisition date for the purpose of calculating the holding period.

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