Taxation of Chargeable Gains Act 1992 Schedule 5BA paragraph 2

Taper relief on revived gains

Schedule 5BA paragraph 2 sets out how taper relief applies to chargeable gains that are revived — that is, gains that were previously deferred and have now come back into charge.

• When a previously deferred gain is revived and becomes chargeable, taper relief may apply to reduce the amount of that gain.
• The amount of taper relief available depends on the period for which the underlying asset was held, calculated from when the original gain arose through to when the revived gain comes into charge.
• This provision was relevant where entrepreneurs' relief or other deferral reliefs had been used, and the deferred gain subsequently crystallised on a later event.
• The paragraph was affected by the Finance Act 2008, which abolished taper relief for disposals on or after 6 April 2008, replacing it with a flat rate of capital gains tax.