Taxes Consolidation Act 1997 section 551

Exclusion from consideration for disposals of sums chargeable to income tax

Section 551 ensures that amounts already chargeable to income tax are not also taken into account as consideration when computing chargeable gains for capital gains tax purposes.

• Any money or money's worth that has been charged to income tax, or taken into account in computing income, profits, gains or losses for income tax purposes, is excluded from the consideration for a disposal when computing a chargeable gain.
• This exclusion does not prevent a balancing charge under the capital allowances rules (Part 9 or Chapter 1 of Part 29) from being taken into account as consideration for CGT purposes.
• The capitalised value of a rent or other right to periodic income payments may be taken into account as CGT consideration, even though the underlying payments are chargeable to income tax.
• The exclusion does not restrict relief for management expenses of a life assurance company under section 707 where the company is not charged under Case I of Schedule D on its life assurance business.