Taxation of Chargeable Gains Act 1992 Schedule 5BA paragraph 8

Derivation of gains

Schedule 5BA paragraph 8 sets out the rules for determining whether chargeable gains are derived from qualifying activities, which is relevant for establishing eligibility for the relief provided under this Schedule.

• Gains must be derived from qualifying activities to benefit from the relief under Schedule 5BA.
• The derivation test determines whether the underlying assets or activities generating the gain meet the qualifying conditions.
• This paragraph was amended by the Finance Act 2008, Schedule 2, paragraph 49.
• The derivation rules ensure that only gains genuinely connected to qualifying activities attract the favourable tax treatment.