# Taxation of Chargeable Gains Act 1992, Paragraph 21


(1) This paragraph has effect where—
(a) at any time, including a time before 7th April 1965, any of the persons having control of a close company, or any person who is connected with a person having control of a close company, has transferred assets to the company, and
(b) paragraph 16 above applies in relation to a disposal by one of the persons having control of the company of shares or securities in the company, or in relation to a disposal by a person having, up to the time of disposal, a substantial holding of shares or securities in the company, being in either case a disposal after the transfer of the assets.
(2) So far as the gain accruing to the said person on the disposal of the shares is attributable to a profit on the assets so transferred, the period over which the gain is to be treated under paragraph 16 above as growing at a uniform rate shall begin with the time when the assets were transferred to the company, and accordingly a part of a gain attributable to a profit on assets transferred on or after 6th April 1965 shall all be a chargeable gain.
(3) This paragraph shall not apply where a loss, and not a gain, accrues on the disposal.

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Source: https://www.legislation.gov.uk/ukpga/1992/12/schedule/2/paragraph/21 (the official version)
Page: https://openlegislation.uk/taxation-of-chargeable-gains-act-1992/schedule-2/paragraph-21
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.