When is the date of disposal for Capital Gains tax purposes? When do special rules apply? Why does it matter?

This is a freeview summary on how to determine the date of disposal, and the key areas where it is important. 

For more details see our subscriber guide Date of disposal

At a Glance

The date of disposal determines the tax point which affects:

  • Which tax year the disposal falls into.
  • The end or start date to determine whether the conditions of certain reliefs are met.
  • What the acquisition date is.

This guide looks at the relevant date for capital gains tax only.

What is the date of disposal?

S28 TCGA 1992 provides that where an asset is disposed of and acquired under a contract:

  • The time at which the disposal and acquisition is made is the time the contract is made (and not, if different, the time at which the asset is conveyed or transferred).

When do special rules apply?

Why does the date of disposal matter?

The date of disposal determines which tax year a disposal falls into which affects:

  • When the disposal must be declared.
  • When the tax is due for payment.
  • What annual exemption is available.
  • Whether sideways loss relief is available.
  • For companies and disposals prior to 31 December 2017 what the indexation allowance is.

The date of disposal is also important for various reliefs such as:

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