Taxation of Chargeable Gains Act 1992 Schedule 4 paragraphs 5–7

Previous no gain/no loss disposals

Section 5–7 of Schedule 4 deals with how deferred gains originating before 31 March 1982 are treated when the asset has passed through one or more no gain/no loss transfers before being disposed of in a chargeable transaction.

• Where an asset acquired on or after 31 March 1982 has only ever changed hands through no gain/no loss disposals since that date, the current owner is treated as if they had held the asset before 31 March 1982, preserving eligibility for relief on pre-1982 deferred charges.
• Any deduction relating to a rolled-over or held-over gain that was made on a no gain/no loss transfer is re-attributed to the later chargeable disposal, so the relief is given at the point the gain actually crystallises.
• This ensures that passing an asset through tax-neutral transfers (for example, intra-group transfers between companies) does not prevent the eventual disposing party from accessing relief on gains that originated before 31 March 1982.
• A no gain/no loss disposal is defined as any disposal where, under the relevant statutory provisions, neither a gain nor a loss accrues to the person making it.