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The commentary in this article applies for corporation tax purposes. There are now no equivalent rules for capital gains tax purposes.

Rebasing effectively eliminates gains accruing for periods before 31 March 1982 but only in relation to disposals after 5 April 1988. It therefore does not apply to gains which were deferred on a disposal after 31 March 1982 but before 6 April 1988. Deferral could have been under rollover or holdover provisions or under relieving provisions which allow gains to be postponed until the occurrence of a particular event. Instead, a special relief (sometimes called 'halving relief') in lieu of rebasing is given by providing that the amount of the deferred gain is halved when it is brought into charge after 5 April 1988¹.

See also CG16980–CG17060.

The relief applies in different ways, depending on whether the deferred gain was rolled over or was simply postponed. The effect of the relief is broadly summarised in the table below. More detailed commentary