CG13120 - Introduction and computation: occasions of charge: assets lost/destroyed/negligible value: introduction

Throughout this manual, all legislative references are to the (鈥淭CGA 1992鈥�) unless otherwise stated.鈥�听听

听

听听

听

There are two basic situations where there is a disposal of an asset without there necessarily being a receipt of a capital sum. These are the actual loss of the asset (see below), and the deemed loss of the asset (see鈥�CG13125). You should, however, remember that any compensation for the loss may give rise to a Capital Gains Tax charge (see鈥�CG12948鈥痮nwards). Where such compensation is used to restore or replace the original asset, see鈥�CG15700+.听听

听

Under , the receipt of a capital sum which is derived from an asset is treated as being a disposal of that asset (see鈥�CG12940). The following paragraphs consider situations where a disposal is treated as taking place, but no capital sum is necessarily received (see鈥�CG12980) so that an allowable loss may accrue.听听

听

S24(1) TCGA 1992 - Entire loss or destruction of asset听听

S24(1) TCGA 1992 treats the entire loss or destruction of an asset as a disposal for Capital Gains Tax purposes.听听

Under , where a gain on a disposal of the asset would have been a chargeable gain, then such a disposal will give rise to an allowable loss. See, however:听听

听

  • CG12340鈥痠f an option has been abandoned for no consideration听
  • CG12965鈥痳egarding the interaction of s24 TCGA92 with s22 TCGA92 if any capital sum by way of compensation or otherwise is received听
  • CG13137鈥痠f buildings and structures on land have been destroyed听
  • CG68070鈥痠f goodwill is claimed to have been destroyed.听

听

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