Taxation of Chargeable Gains Act 1992 section 36

Deferred charges on gains before 31st March 1982

Section 36 introduces Schedule 4, which provides for the reduction of a deferred corporation tax charge on chargeable gains where the charge relates to an increase in the value of an asset that occurred before 31st March 1982.

• The section activates Schedule 4, which contains the detailed rules for reducing deferred charges on pre-1982 gains
• It applies specifically to corporation tax charges that have been deferred rather than charged immediately at the time of a disposal or deemed disposal
• The reduction applies where the deferred charge is wholly or partly attributable to growth in an asset's value before 31st March 1982
• The underlying principle is that gains accruing before 31st March 1982 should not be subject to tax, reflecting the general rebasing date used throughout capital gains legislation