Taxation of Chargeable Gains Act 1992 section 198G

Qualification for section 153 relief

Section 198G sets out the conditions that must be met for a disposal and acquisition of oil industry assets to qualify for partial roll-over relief under section 153, where only part of the sale proceeds is reinvested in replacement assets.

• This section applies for the purposes of the ring fence reinvestment rules in sections 198B and 198C, and has effect for disposals made on or after 22 April 2009.
• A disposal and acquisition qualifies for section 153 relief where section 153(1) applies to part of the consideration, the conditions of section 153(1)(a) and (b) would be met if a claim were made, and full roll-over relief would have been available were it not for section 153(1) disapplying section 152(1).
• When deciding whether a disposal and acquisition qualifies, the rules in section 153(2) are modified by the oil industry provisions in section 198F(4) and (5), and the ring fence reinvestment rules in section 198B must be disregarded.
• Subject to those modifications, all relevant circumstances must be considered, including the special oil field asset replacement rules in section 198(1).