Chargeable gains group
In this lesson, you'll learn how chargeable gains groups work and why they matter for corporation tax relief planning. A chargeable gains group consists of a company and its 75% subsidiaries, where each ownership link is direct and at least 75%.
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In this lesson
- 0:00 Chargeable gains group definition and structure
- 0:43 Ownership requirements and residency rules
- 1:06 Key benefits of group membership
- 2:03 Rollover relief within groups
- 2:30 Illustration: Which companies qualify
- 3:39 Group rollover relief worked example
- 5:27 Deferred gain and base cost calculation
About this lesson
The key benefit is that companies within the group can transfer assets at no gain, no loss, surrender capital losses to other group members, and claim group rollover relief — meaning one company can sell an asset and another can buy one, with the gain deferred against the purchase. You'll see how to identify which subsidiaries qualify for group membership, calculate the maximum deferral available under rollover relief, and determine when a deferred gain becomes chargeable on the eventual sale of the replacement asset. This is essential for ATX and SBR, where relief planning and group structures feature heavily in both objective and case study questions.
Duration: 6m
Transcript
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