Taxation of Chargeable Gains Act 1992 section 22

Disposal where capital sums derived from assets

Section 22 establishes that receiving a capital sum derived from an asset counts as a disposal for capital gains tax purposes, even where no one acquires the asset in return.

• A disposal occurs whenever a capital sum is derived from an asset, including compensation for damage, loss, destruction or depreciation of an asset, or insurance proceeds for such events
• Capital sums received for forfeiting, surrendering or refraining from exercising rights, and sums received as consideration for the use or exploitation of assets, are also treated as disposals
• The time of disposal is the date the capital sum is received, and "capital sum" means any money or money's worth not excluded from the computation of the gain
• The rule does not apply to companies receiving capital distributions within the meaning of section 122, or distributions subject to (or exempt from) the corporation tax charge on company distributions under Part 9A of CTA 2009