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C2.601A Assets held on 31 March 1982—rebasing for capital gains tax

The commentary in this article applies for capital gains tax purposes. See C2.602 for the rules applying for corporation tax purposes.

Where an individual or trustee makes a disposal of an asset which they acquired on or before 31 March 1982, a special rule (known as 'rebasing') applies in computing the gain or loss. Rebasing applies automatically and without exceptions.

The effect of the rule is that the market value of the asset on 31 March 1982 is deducted in the computation instead of the acquisition cost. Incidental costs of acquisition are also excluded from the computation as is any expenditure on enhancement or on preservation or establishing title within TCGA 1992, s 38(1)(b) which was incurred before 31 March 1982. Such enhancement etc expenditure will be reflected in the market value.

This result is achieved by deeming assets held on 31 March 1982 to have been disposed of and immediately reacquired by their owner on that date, at their then