Taxation of Chargeable Gains Act 1992 Schedule 4 paragraph 4

Postponed charges

Schedule 4 paragraph 4 provides halving relief for gains that were previously deferred and come into charge on or after 6 April 1988, where those gains trace back to disposals of pre-31 March 1982 assets.

• When a previously postponed gain crystallises on or after 6 April 1988, and that gain is attributable (wholly or partly, directly or indirectly) to a disposal made before 6 April 1988 of an asset acquired before 31 March 1982, the gain may qualify for halving relief under this Schedule.
• The relevant postponement provisions are those in sections 116(10) and (11), 134, 140, 154(2) and 248(3) of TCGA 1992, which deal with deferred charges arising from reorganisations, conversions, transfers to non-resident companies, replacement with depreciating assets and compulsory acquisitions.
• The relief does not apply if the postponed gain is attributable to a disposal made on or after 6 April 1988, or if the gain would have been smaller had halving relief from a previous application of this Schedule been properly claimed.
• Additionally, sections 134, 140(4), 154(2) and 248(3) cannot trigger a charge on or after 6 April 1988 if that charge would be directly attributable to a disposal made on or before 31 March 1982 — effectively preventing those provisions from creating a new taxable event in respect of very old disposals.