Taxation of Chargeable Gains Act 1992 Schedule 3 paragraph 7

Elections under section 35(5): excluded disposals

Schedule 3 paragraph 7 sets out the types of asset disposals that are excluded from a global rebasing election under section 35(5), which would otherwise treat all assets held on 31 March 1982 as if acquired at their market value on that date.

• Disposals of plant or machinery, or assets used in mineral extraction trades, are excluded where capital allowances have been or could have been claimed on them.
• Disposals of petroleum licences under the Petroleum Act 1998 or the Petroleum (Production) Act (Northern Ireland) 1964 are excluded from the election.
• Disposals of shares that were unquoted on 31 March 1982 and derived the greater part of their value from UK oil exploration or exploitation assets are also excluded.
• Where an asset was acquired on a no gain/no loss basis, the exclusion tests are applied by looking back through the chain of transfers to the person who last acquired the asset on a normal (non-no gain/no loss) disposal.