Taxation of Chargeable Gains Act 1992 section 121

Exemption for government non-marketable securities

Section 121 exempts savings certificates and certain government non-marketable securities from capital gains tax by providing that they are not chargeable assets.

• Savings certificates and non-marketable securities issued under the National Loans Act 1968, the National Loans Act 1939, or corresponding Northern Ireland legislation are not chargeable assets for CGT purposes
• Savings certificates include those issued under various National Loans and National Debt Acts, war savings certificates, and equivalent certificates issued under Northern Ireland law
• Non-marketable securities are defined as securities that cannot be transferred at all, or can only be transferred with the consent of a Minister of the Crown, a Northern Ireland government department, or the National Debt Commissioners
• Because these assets are excluded from being chargeable assets, no chargeable gain (and no allowable loss) can arise on their disposal