Taxation of Chargeable Gains Act 1992 Schedule 5AAA paragraph 37

Separate application of exemptions under this Schedule and elsewhere

Paragraph 37 of Schedule 5AAA deals with how multiple tax exemptions are applied independently when a gain or loss arises on the disposal of a right or interest in a company, ensuring that each exemption operates separately and that the combined exempt amount does not exceed the total gain or loss.

• Where more than one relevant exemption applies to a gain or loss on disposal of a right or interest in a company, each exemption operates independently of the others.
• Each exemption is calculated by reference to the whole gain or loss, ignoring the effect of any other applicable exemption.
• The total exempt proportion is the sum of the separately calculated exempt amounts, but cannot exceed the full amount of the gain or loss.
• The relevant exemptions are those under Part 4 of Schedule 5AAA (UK property rich collective investment vehicles), paragraph 3A of Schedule 7AC (qualifying institutional investors), and Part 12 of the Corporation Tax Act 2010 (REITs).