Taxation of Chargeable Gains Act 1992 Schedule 11 paragraph 8

Depreciated valuations referable to deaths before 31st March 1973

Paragraph 8 of Schedule 11 modifies the general market value rule in section 272(2) to require that, where a death occurred before 31 March 1973, any depreciation in the market value of property caused by that death must be reflected in the valuation used for capital gains tax purposes.

• This provision applies only where the relevant death took place before 31 March 1973.
• It modifies the standard market value rule in section 272(2), which normally estimates value on an open-market basis without adjustments for specific circumstances.
• Where the death itself caused a reduction in the market value of the property (for example, the termination of a life interest reducing the value of an asset), that depreciation must be taken into account in the valuation.
• The adjustment applies both where capital gains tax is chargeable and where an allowable loss arises in consequence of the death.