CG17902 - Taper relief: qualifying holding period: examples

EXAMPLE 1 - A SIMPLE CASE

Asset acquired 17 April 1998.

Asset disposed of 20 May 2000.

Period of ownership: 2 years 34 days.

The qualifying holding period is from 17 April 1998 to 20 May 2000 and for taper relief will be 2 whole years in this period.

EXAMPLE 2 - THE BONUS YEAR

Non-business asset acquired 6 April 1996.

Asset disposed of 5 May 2000.

Period of ownership post 5 April 1998: 2 years 30 days.

As asset held at 17 March 1998 and also 6 April 1998 the bonus year will be available.

The qualifying holding period is from 6 April 1998 to 5 May 2000 and for taper relief will be 3 whole years (2 years in the qualifying holding period + bonus year).

EXAMPLE 3 - NO COMPLETE YEARS IN QUALIFYING HOLDING PERIOD

Asset acquired 20 March 1998.

Asset disposed of 27 March 1999.

Period of ownership post 5 April 1998: 356 days.

As the qualifying holding period is from 6 April 1998 to 27 March 1999 the asset was held for less than one whole year post 5 April 1998. The asset was also not held at 17 March 1998 (no bonus year available). There will be no years to qualify for taper relief.