CG17901 - Taper relief: qualifying holding period: bonus year

TCGA92/S2A (8), TCGA92/S2A (9)

TCGA92/S2A(8) provides that a 'bonus year' may be available in certain cases.

For disposals of assets before 6 April 2000, an additional one year (referred to throughout this guidance as the `bonus year') will be added to the qualifying holding period for all assets acquired before 17 March 1998 and still held at 6 April 1998, irrespective of their date of acquisition.

For disposals of assets on or after 6 April 2000 only non-business assets, see CG17930+, acquired before 17 March 1998 can qualify for the bonus year. This applies in cases where assets are only partly business and for taper relief purposes the gain on the business asset is separate from the gain on the non-business asset. This may be the case when shares become business assets on 6 April 2000, see CG17963. The non-business asset will be eligible for the bonus year where the qualifying conditions are met.

Shares acquired in the period from 17 March to 5 April 1998 which are shares of the same class in the same company as shares already held on 16 March 1998, are treated for this purpose as acquired before 17 March 1998. This stems from the rules for pooling shares which apply to share acquisitions before 6 April 1998 (para 5.3); a share pool is a single asset and any acquisition is an increase in that asset.