Taxation of Chargeable Gains Act 1992, section 1

Capital gains tax

Part 1 Capital gains tax and corporation tax on chargeable gains

(1)Capital gains tax is charged for a tax year on chargeable gains accruing in the year to a person on the disposal of assets.

(2)As a result of section 4 of CTA 2009, capital gains tax is not charged on gains accruing to a company, but corporation tax is chargeable instead in accordance with—

(a)section 2 of CTA 2009,

(b)Chapter 2 of this Part, and

(c)other relevant provisions of the Corporation Tax Acts.

(3)Capital gains tax is charged on the total amount of chargeable gains accruing to a person in a tax year after deducting—

(a)any allowable losses accruing to the person in the tax year, and

(b)so far as not previously deducted under this subsection, any allowable losses accruing to the person in any previous tax year.

Definitions used in section 1 7

tax

and for the purposes of this definition “tax” means capital gains tax, corporation tax or income tax.

Defined in s.16A(2) · see it in the full Act
tax year

(1ZA) In this Act and other enactments relating to capital gains tax “tax year” means a year beginning on 6 April and ending on the following 5 April; and “the tax year 2008-09” means the tax year beginning on 6 April 2008 (and any corresponding expression in which two years are similarly mentioned is to be read in the same way).

Defined in s.288(1ZA) · see it in the full Act
assets

(a) the reference to “assets” were a reference to “property”, and

Defined in Sch.4ZA para.22(2) · see it in the full Act
asset

In this sub-paragraph “asset” includes part of an asset.

Defined in Sch.8B para.6(1) · see it in the full Act
CTA 2009

“CTA 2009” means the Corporation Tax Act 2009 ;

Defined in s.288(1) · see it in the full Act
company

“company” includes any body corporate or unincorporated association but does not include a partnership, and shall be construed in accordance with section 99 ;

Defined in s.288(1) · see it in the full Act

(5) In this paragraph “company” and “group” shall be construed in accordance with section 170(2) to (9).

Defined in Sch.2 para.5(5) · see it in the full Act
allowable loss

“allowable loss” shall be construed in accordance with sections 8(2) , 16 , 16A , 261B, 261D and 263ZA ;

Defined in s.288(1) · see it in the full Act

(1) For the purposes of this Act, “allowable loss” does not include a loss accruing to a person if—

(a)it accrues to the person directly or indirectly in consequence of, or otherwise in connection with, any arrangements, and

(b)the main purpose, or one of the main purposes, of the arrangements is to secure a tax advantage.

Defined in s.16A(1) · see it in the full Act

Cases considering section 1 7

The Trustees of the Morrison 2002 Maintenance Trust & Ors v Revenue And Customs

[2019] EWCA Civ 93 · 6 February 2019

The charge was applied to the realistic disposal of the shares: the Ramsay analysis determined that the trustees had made a disposal for capital gains tax purposes. (see paras [18]; [51]-[59])

Schofield v HM Revenue and Customs

[2012] EWCA Civ 927 · 11 July 2012Limits

The court held that the composite scheme did not produce a disposal giving rise to the claimed tax consequence under the statutory charge to capital gains tax (see paras [8]; [39]).

DMWSHNZ Ltd v HM Revenue and Customs

[2015] EWCA Civ 1036 · 20 October 2015Defines

Confirms that corporation tax is charged on chargeable gains computed under the Act and accruing on the disposal of assets; this frames the statutory issue under section 171A. (see para [10])

What each judgment says about section 1 is in the case-law panel in the full Act.