Taxation of Chargeable Gains Act 1992 section 233

Chargeable event when replacement property owned

Section 233 deals with what happens when a chargeable event occurs and the rolled-over gain from the original disposal has been further rolled over into subsequent replacement property through successive business asset replacement claims.

• Where the full rolled-over gain has been carried forward from the replacement assets into other property through further business asset rollover claims, and the claimant or a connected person owns all that property when a chargeable event occurs, a deemed disposal and immediate reacquisition of the property is triggered at a value that crystallises a chargeable gain equal to the original deferred gain.
• Where only part of the gain has been carried forward into other property, or only some of the property is owned at the time of the chargeable event, the same deemed disposal rules apply but the gain brought into charge is reduced to whatever amount is just and reasonable in the circumstances.
• If any tax charge has already arisen in respect of part of the deferred gain before the chargeable event occurs — for example, because one of the replacement assets was previously disposed of without further rollover — the value used for the deemed disposal is reduced on a just and reasonable basis to avoid double taxation, potentially to a level that produces neither a gain nor a loss.
• This relief was withdrawn in relation to disposals occurring on or after 6 April 2001, and as a result this section is effectively repealed.