Taxation of Chargeable Gains Act 1992 section 239A

De-registration of registered pension schemes

Section 239A deals with the capital gains tax consequences when a registered pension scheme loses its registered status and a de-registration charge arises under Finance Act 2004.

• When a pension scheme's registration is withdrawn, a de-registration charge arises under section 242 of the Finance Act 2004, and this section determines the CGT treatment of the scheme's assets at that point
• The scheme's assets are treated as newly acquired at the moment immediately before de-registration, with their acquisition cost set equal to the amount on which the de-registration charge is levied
• No disposal of assets is treated as occurring at the point of de-registration — so there is no immediate chargeable gain triggered by the withdrawal of registration itself
• The person treated as acquiring the assets is whoever would be chargeable to CGT on any gain arising from a subsequent disposal of those assets