Taxation of Chargeable Gains Act 1992 section 118

Amount to be treated as consideration on disposal of deep discount securities etc.

Section 118 previously set out how to determine the consideration amount when disposing of deep discount securities for capital gains tax purposes, but it has been repealed and no longer applies.

• Section 118 dealt with the capital gains tax treatment of disposals of deep discount securities — that is, securities issued at a significant discount to their redemption value.
• The section was repealed by the Finance Act 1996, reflecting the move to a new regime for the taxation of loan relationships.
• The repeal took effect for company accounting periods ending after 31 March 1996 and for individuals from the 1996–97 tax year onwards.
• Any disposals of deep discount securities from these dates onward fall under the loan relationships rules or other applicable provisions rather than this former capital gains tax provision.