In addition to the other tax charges covered in
RPSM07109240 to
RPSM07109300 the
scheme administrator will be liable to tax on any
capital gains arising on disposals by an investment-regulated
pension scheme relating to taxable property. These are scheme
chargeable payments so the scheme administrator is liable to the
scheme sanction charge at 40%.
Where taxable property is gifted to the scheme there is
generally no acquisition tax charges, see
RPSM07109220. But the tax charges on
gains do apply to this taxable property.
The calculations broadly follow the principles applying under
Taxation of Chargeable Gains Act 1992 legislation and are made on
the same basis as if the scheme were a UK resident, ordinarily
resident and domiciled person but no claim can be made for the
annual exempt amount. Guidance on specific points can be found in
the CGT manual.
Calculations are made for each tax year. If a
pension scheme makes a series of disposals, those
that generate losses may be set against those generating gains and
only the net amount of gains is the scheme chargeable payment.
Unused losses are lost and cannot be carried forward or backward to
other tax years. Losses cannot be claimed in respect of disposals
of any scheme assets that are not taxable property.
Taper relief will be given at the rate applicable to
non-business assets.
This applies equally to any gains that may arise on property
that may otherwise qualify for business assets taper rate, for
example some furnished holiday lettings.
Different rules apply to taxable property that is tangible
moveable property that is a wasting asset. Any loss arising on
disposal of such assets may only be set against gains arising from
other assets of that category in that same tax year.
Where an asset only becomes a taxable property asset some
time after its original acquisition by the scheme it is treated as
acquired at the time it became a taxable asset and its cost is the
amount of unauthorised payment treated as made by the pension
scheme at that time.
If an asset is not a taxable asset throughout the time it is
held by the scheme the gain on its disposal is to be reduced on a
time basis to the period when it was a taxable asset.
A scheme disposes of an asset when it ceases to hold it and
disposes of a part if it ceases to hold any part of it.
| Glossary ( RPSM20000000) |
