Taxation of Chargeable Gains Act 1992 Schedule 5C paragraph 5

Persons to whom gain accrues

Paragraph 5 of Schedule 5C determines which person is treated as the one to whom a deferred gain accrues when that gain is brought back into charge.

• When a chargeable event occurs, the deferred gain is treated as accruing to the person who holds the qualifying investment at that time, not necessarily the person who made the original disposal.
• If the investment has been transferred between spouses or civil partners (on a no-gain, no-loss basis), the gain accrues to the transferee spouse or civil partner who holds the shares when the chargeable event takes place.
• Where the investor has died and the shares have passed to a legatee or personal representative, the gain may accrue to that successor rather than being extinguished by death, depending on the circumstances of the chargeable event.
• The paragraph was amended by Finance Act 2004 to ensure the rules operate correctly in relation to changes introduced by that Act, including updates to the cross-referencing framework.