What is the cap on recoverable gains under section 284B of the Taxation of Chargeable Gains Act 1992?

Section 284B(2) caps the total chargeable gains that can be treated as accruing to any person under section 284A(3) at the amount of the concessionary benefit originally received. This prevents HMRC from recovering more than the relief originally given, even if multiple triggering events occur across different occasions.

Can a taxpayer revert to the concessionary basis after an assessment has been raised under section 284A?

Yes. Under section 284B(3), a taxpayer may give written notice irrevocably accepting the concessionary treatment. HMRC must then make all necessary adjustments — including new assessments, amendments, or tax repayments — to ensure no person has a greater liability than they would have had if the concessionary basis applied from the outset.

What are the permitted time limits for giving notice to accept the concessionary basis under section 284B?

The taxpayer must give notice within the latest of three periods: twelve months from the relevant assessment date, the end of the period for amending their self-assessment or company tax return for the relevant chargeable period, or the deadline for claiming any further relief against the recoverable amount resulting from acceptance of the concession.

Do normal statutory time limits apply to adjustments made under section 284B?

No. The power to make adjustments under section 284B(3) expressly overrides normal statutory time limits for making or amending assessments. This ensures taxpayers who exercise their right to revert to the concessionary basis are not disadvantaged by procedural deadlines that might otherwise prevent the necessary corrections from being made.

Taxation of Chargeable Gains Act 1992 section 284B

Provisions supplementary to section 284A

Section 284B provides safeguards and time limits that supplement the rules in section 284A on the withdrawal of concessionary relief that deferred a chargeable gain.

The total chargeable gains recovered under section 284A(3) from any person cannot exceed the amount of the concessionary benefit originally received
Where an assessment has been made on the statutory (non-concessionary) basis, the taxpayer may give notice within a permitted time to irrevocably accept the concessionary basis, triggering all necessary adjustments
The permitted time for giving notice is the latest of: twelve months from the assessment, the self-assessment or company tax return amendment deadline, or the deadline for claiming any further relief
Adjustments to revert to the concessionary basis override normal time limits for making or amending assessments

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