CG54236 | Qualifying corporate bonds: transitional: qualifying indexed securities

The transitional rules operate on the first disposal after 5 April 1996 of

• the debt, or

• any asset falling to be treated by TCGA92 as the same asset for capital gains purposes.

This disposal is described in the transitional rules as the relevant event`. Disposalincludes redemption of the debt, TCGA92/S251 (2).

A no gain/no loss disposal within TCGA92/S58, see CG22200+, is not treated as a disposalfor this purpose. The transitional rules operate instead on the first disposal by thespouse or civil partner.

On the relevant event, you should compute the chargeable gain or allowable loss which would have accrued to the person holding the asset at 5 April 1996 as if they had sold it at that date for a consideration equal to its market value at that date. This gain or loss is then charged, or allowed, on the person making the disposal in the year of assessment in which the relevant event occurs.