CG66644 - Gifts: later disposal by charity

Where a charity or other body has acquired an asset and CG66643 applied then the cost of the asset will be the same as that of the donor. The charity or other body is also treated as having acquired the asset at the same time as the donor acquired it.

If the charity or other body is liable to Capital Gains Tax on the disposal of the asset it is treated as though it had actually owned the asset throughout.

It can therefore

• claim time-apportionment
• make an election under TCGA92/SCH2/PARA17 if the asset was originally acquired before 6 April 1965
• make a rebasing election under TCGA92/S35 (5) if the asset was originally acquired before 31 March 1982.

For indexation purposes, however, the charity is treated as

• acquiring the asset at the date it actually acquired it

and

• for the no gain/no loss consideration set out in CG66643.

If the donor held the asset on 31 March 1982 see TCGA92/S55 (5)-(6) (CG46111 - CG46112).