Taxation of Chargeable Gains Act 1992 Schedule 5C paragraph 4

Gain accruing on chargeable event

Paragraph 4 of Schedule 5C establishes how to calculate the chargeable gain that arises when a chargeable event occurs in relation to assets for which a capital gains tax charge was previously deferred.

• When a chargeable event occurs, a chargeable gain is treated as accruing to the person who holds the relevant investment at that time, equal to the amount of gain that was originally deferred.
• The gain is treated as accruing at the time of the chargeable event, regardless of when the original disposal and deferral took place.
• If only part of the deferred gain relates to the chargeable event — for example, where a partial disposal of the qualifying investment occurs — then only a proportionate share of the deferred gain is brought back into charge.
• The provisions were amended by Finance Act 2004 to align with changes to the broader regime for enterprise investment relief and venture capital trust relief.

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