Taxes Consolidation Act 1997 section 544

Interpretation and general (Chapter 2)

Section 544 sets out interpretational provisions and general rules for computing chargeable gains and allowable losses for capital gains tax purposes.

• A renewals allowance (a deduction claimed for income tax by reference to the cost of replacing an asset) is treated for CGT purposes as expenditure on the asset being replaced, and sums taken into account for income tax apply even where profits are not actually chargeable or losses not allowable
• No deduction may be claimed more than once in a CGT computation, and where consideration or expenditure must be split across transactions, the apportionment must be just and reasonable
• On a part disposal, deductible expenditure must be apportioned before applying reliefs such as transfers between spouses or civil partners, roll-over relief, or any provision ensuring neither a gain nor a loss arises
• Any income tax assessment or determination is conclusive for CGT purposes where the CGT liability depends on an income tax provision, and CGT computations may take account of events before 6 April 1974 unless expressly excluded