What did section 249 of the Taxation of Chargeable Gains Act 1992 deal with?

Section 249 of the Taxation of Chargeable Gains Act 1992 set out rules for the capital gains tax treatment of grants paid to individuals who gave up agricultural land. These grants were typically made under government schemes designed to encourage restructuring of agricultural holdings in the United Kingdom.

When was section 249 TCGA 1992 repealed and by which legislation?

Section 249 was repealed by the Finance Act 2012, specifically under section 227 and Schedule 39, paragraph 49(1). The repeal took effect for disposals made on or after 6 April 2013. For any disposals before that date, the original provisions of section 249 would still have applied at the time.

Does section 249 TCGA 1992 still apply to agricultural land grants received before 6 April 2013?

Yes, for disposals that took place before 6 April 2013, the original provisions of section 249 would still have applied at the time of the transaction. However, for any disposals on or after that date, section 249 has no effect as it was fully repealed by the Finance Act 2012.

Why was section 249 of TCGA 1992 repealed?

The repeal of section 249 was largely a tidying-up measure to remove redundant legislation from the statute book. In practice, the underlying government grant schemes for giving up agricultural land had largely ceased to operate, making the provision no longer necessary under United Kingdom tax law.

Taxation of Chargeable Gains Act 1992 section 249

Grants for giving up agricultural land

Section 249 previously provided rules for the capital gains tax treatment of grants received for giving up agricultural land, but has been repealed and no longer applies.

Section 249 dealt with the CGT treatment of grants received by individuals who gave up agricultural land.
The section was repealed by the Finance Act 2012 (section 227 and Schedule 39, paragraph 49(1)).
The repeal took effect for disposals made on or after 6 April 2013.
Any disposals made before 6 April 2013 would still have been governed by the original provisions of section 249.

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