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Chargeable gains and allowable losses accrue on the disposal of assets.

As the word ‘disposal� is not expressly defined in TCGA92 it must be given its normal everyday meaning. Therefore, disposals for capital gains purposes include natural disposals and part disposals of assets, see CG12700+.

There are occasions when a person may receive a capital sum even though a natural disposal of an asset has not occurred, for example, on receiving compensation for damage to an asset or a sum of money from another person for the right to use or exploit an asset.

When a capital sum is derived from an asset, s22 TCGA92 treats the owner as having made a disposal for capital gains purposes.

This part of the guidance looks at situations where s22 TCGA92 deems a disposal to have taken place when a capital sum is derived from an asset.