Taxation of Chargeable Gains Act 1992, section 155

Relevant classes of assets

Part V Transfer of business assets , business asset disposal relief and investors' relief

The classes of assets for the purposes of section 152(1) are as follows.

  • CLASS 1

    Assets within heads A and B below.

    • Head A

      1

      Any building or part of a building and any permanent or semi-permanent structure in the nature of a building, occupied (as well as used) only for the purposes of the trade

      2

      Any land occupied (as well as used) only for the purposes of the trade.

      Head A has effect subject to section 156.

    • Head B

      Fixed plant or machinery which does not form part of a building or of a permanent or semi-permanent structure in the nature of a building.

  • CLASS 2

    M27 Ships, aircraft and hovercraft (“hovercraft” having the same meaning as in the Hovercraft Act 1968 ).

  • CLASS 3

    Satellites, space stations and spacecraft (including launch vehicles).

  • CLASS 4

    Goodwill.

  • CLASS 5

    Milk quotas (that is, rights to sell dairy produce without being liable to pay milk levy or to deliver dairy produce without being liable to pay a contribution to milk levy) and potato quotas (that is, rights to produce potatoes without being liable to pay more than the ordinary contribution to the Potato Marketing Board’s fund).

  • [F1077 CLASS 6

    Ewe and suckler cow premium quotas (that is, rights in respect of any ewes or suckler cows to receive payments by way of any subsidy entitlement to which is determined by reference to limits contained in a Community instrument).F1077]

  • [F1078 CLASS 7

    Fish quota (that is, an allocation of quota to catch fish stocks, which derives from the Total Allowable Catches set in pursuance of Article 8(4) of Council Regulation (EEC) 3760/92 and under annual Council Regulations made in accordance with that Article, or under any replacement Community Instruments).F1078]

  • [F1079 CLASS 7A

    [F1080 Assets within heads A and B below.

    • Head AF1080]

      Payment entitlements under the single payment scheme (that is, the scheme of income support for farmers in pursuance of Title III of [F1081 Council Regulation (EC) No 73/2009F1081] ).

    • [F1082 Head B

      Payment entitlements under the basic payment scheme (that is, the scheme of income support for farmers in pursuance of Regulation (EU) No 1307/2013 of the European Parliament and of the Council).F1082,F1079]]

  • [F1083 CLASS 8

    Assets within heads A and B below.

    • Head A

      Rights of a member of Lloyd’s under a syndicate within the meaning of Chapter III of Part II of the Finance Act 1993.

    • Head B

      An asset which a member of Lloyd’s is treated as having acquired by virtue of section 82 of the Finance Act 1999.F1083]

Definitions used in section 155 10

class

“class”, in relation to shares or securities, means a class of shares or securities of any one company;

Defined in s.288(1) · 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
building

“building” includes part of a building and references to a building may include references to land occupied therewith and used for the same purposes;

Defined in Sch.2 para.15 · see it in the full Act
trade

“trade” has the same meaning as in the Income Tax Acts;

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

(2) In sections 152 to 157 and this section the expressions “trade”, “profession”, “vocation”, “office” and “employment” have the same meanings as in the Income Tax Acts, ... .

Defined in s.158(2) · see it in the full Act

(b) “trade”, “profession” and “vocation” have the same meaning as in the Income Tax Acts.

Defined in s.165(8) · see it in the full Act

(9) In this section and Schedule 7 and in determining whether a company is a trading company for the purposes of this section and that Schedule, the expression “trade” shall be taken to include the occupation of woodlands where the woodlands are managed by the occupier on a commercial basis and with a view to the realisation of profits.

Defined in s.165(9) · see it in the full Act
land

“land” includes messuages, tenements, and hereditaments, houses and buildings of any tenure;

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

(b) “land” includes buildings.

Defined in Sch.2 para.9(5) · see it in the full Act
the Board

“the Board” means the Commissioners of Inland Revenue;

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

(3) In the application of this Schedule to Scotland “premium” includes in particular a grassum payable to any landlord or intermediate landlord on the creation of a sublease.

Defined in Sch.8 para.10(3) · see it in the full Act
article

“article” means an article of any description;

Defined in Sch.2 para.15 · see it in the full Act
income

(6) Sub-paragraphs (4) and (5) above apply for the purposes of paragraph (b) of sub-paragraph (1) above as they apply for the purposes of paragraph (a), reading “income” for “property".

Defined in Sch.5 para.2(6) · see it in the full Act

Cases considering section 155 3

Mertrux Ltd v HM Revenue and Customs

[2013] EWCA Civ 821 · 9 July 2013Defines

The court used section 155 to identify the classes of assets eligible for roll-over relief, observing that goodwill qualified but the dealership contract did not, apart from specified fixed assets and goodwill. (see para [18])

Suzanne Elaine Procter v Philip John Procter & Ors

[2022] EWHC 1202 (Ch) · 25 May 2022

The court referred to section 155 and the relevant classes of assets in explaining the taxation context of the 2003 transactions, without determining a tax liability. (see paras [150]-[153])

United Kingdom Assocation of Fish Producer Organisations v Secretary of State for Environment, Food And Rural Affairs

[2013] EWHC 1959 (Admin) · 10 July 2013

Notes that section 155 treats fish quota as a chargeable asset for rollover-relief purposes. The tax treatment was held incapable of establishing an expectation that the allocation system would remain unchanged. (see paras [43], [103])

What each judgment says about section 155 is in the case-law panel in the full Act.

Amendments and notes

12 notes from legislation.gov.uk

Amendments

  1. F1077Words in s. 155 inserted (27.7.1993 with effect as mentioned in s. 86(4)) by 1993 c. 34, s. 86(1)(4)
  2. F1078Words in s. 155 added (with effect in accordance with art. 1(2) of the amending S.I.) by The Finance Act 1993, Section 86(2), (Fish Quota) Order 1999 (S.I. 1999/564), arts. 1(1), 3
  3. F1079Words in s. 155 inserted (with effect in accordance with art. 1(2) of the amending S.I.) by The Finance Act 1993, Section 86(2), (Single Payment Scheme) Order 2005 (S.I. 2005/409), arts. 1(1), 2
  4. F1080Words in s. 155 inserted (with effect in accordance with s. 61(4) of the amending Act) by Finance Act 2014 (c. 26), s. 61(2)
  5. F1081Words in s. 155 substituted (with effect in accordance with s. 37(4) of the amending Act) by Finance Act 2012 (c. 14), s. 37(1)
  6. F1082Words in s. 155 inserted (with effect in accordance with s. 61(4) of the amending Act) by Finance Act 2014 (c. 26), s. 61(3)
  7. F1083Words in s. 155 inserted (with application in accordance with s. 84(2) of the amending Act) by Finance Act 1999 (c. 16), s. 84(1)

Modifications

  1. C264Ss. 152-160 modified (retrospective to 11.1.1994) by Finance Act 1994 (c. 9), s. 252(3), Sch. 24 para. 6(1)
  2. C267Ss. 152-156 modified (3.5.1994) by Finance Act 1994 (c. 9), Sch. 25 para. 3(2)
  3. C285Ss. 152-156 modified (16.7.1992) by 1992 c. 48, s. 77, Sch. 17 paras. 3, 7
  4. C286S. 155 restricted (24.7.2002) by Finance Act 2002 (c. 23), Sch. 29 para. 132(5)

Marginal citations

  1. M271968 c.59.