SolvedCG60201 | Reliefs: introduction and order of reliefs
From HM Revenue & Customs · Capital Gains Manual
The disposal of particular assets may attract full or partial relief from Capital Gains Tax. These volumes deal with
roll-over relief for the replacement of business assets, see CG60250C
roll-over relief for the replacement of land by local constituency associations of political parties on reorganisations of constituencies, see CG60260
roll-over relief for the replacement of land acquired by an authority having powers of compulsory purchase, see CG61900+
roll-over relief on a transfer of shares to an All Employee Share Ownership Trust, see CG61970+
private residence relief on a disposal of a person's only or main residence, see CG64200+
relief on the transfer of a business to a company, see CG65700+
relief for losses on loans to traders or for payments under a guarantee, see CG65900C
double taxation relief on the disposal of assets where foreign tax is paid, see CG14380
hold-over relief on gifts, see CG66450C.
Particular types of organisation are exempt from Capital Gains Tax on the disposal of certain assets. The next part of Volume 7 deals with
Where reliefs are available in respect of discrete types of asset no confusion can arise about their interaction. However, particularly in relation to business assets, a number of different reliefs may be available. The order in which such reliefs should be allowed depends on the way in which they work.
Roll-over relief (TCGA92/S152 - TCGA92/S158) reduces the consideration to be taken into account in computing the gain on disposal. This comes first.
Relief on the transfer of a business to a company (TCGA92/S162) known as incorporation relief works by reducing the net chargeable gains.
Relief for gifts of business assets (TCGA92/S165) also works by reducing the chargeable gains. Instructions on the interaction of this relief are at CG66450C.