Taxation of Chargeable Gains Act 1992 section 109

Corporation tax: pre-April 1982 share pools

Section 109 deals with the treatment, for corporation tax purposes, of shares and securities of the same class acquired between April 1965 and April 1982 that were pooled together (known as "1982 holdings") and sets out how indexation allowance and allowable expenditure are calculated on their disposal.

• A 1982 holding is a frozen pool of same-class shares or securities acquired between 7 April 1965 and 31 March 1982 (for companies), treated as a single asset that cannot grow through further acquisitions of the same class
• For indexation allowance purposes, all allowable expenditure in the pool is treated as though it was incurred in March 1982, regardless of when the shares were actually purchased
• Securities acquired before 1 April 1965 are excluded from the pool unless an election is made to treat them as part of an existing or new 1982 holding
• On disposal, the allowable expenditure attributable to the holding is the amount that would have applied had the holding been disposed of immediately before this section came into force, and that expenditure is treated as original acquisition cost for indexation purposes