Taxation of Chargeable Gains Act 1992 Schedule 11 paragraph 21

Disposal before acquisition

Paragraph 21 of Schedule 11 preserves the effect of earlier legislation where an asset was disposed of before it was acquired, provided the disposal took place before the TCGA 1992 came into force.

• This provision is a transitional saving clause within Schedule 11, which deals with the changeover from earlier capital gains legislation to TCGA 1992.
• It applies specifically to situations where an asset was disposed of before the person had actually acquired it — for example, certain short-selling or forward contract arrangements.
• Where such a disposal occurred before TCGA 1992 commenced, the tax treatment under the old legislation is preserved unchanged, even though those earlier enactments have been repealed.
• The replacement of the old rules by TCGA 1992 does not alter the outcome for these pre-commencement disposals, whether or not TCGA 1992 contains a corresponding provision.