http://www.legislation.gov.uk/ukpga/1992/12/section/45Taxation of Chargeable Gains Act 1992An Act to consolidate certain enactments relating to the taxation of chargeable gains.1992-03-06texttext/xmlenStatute Law Database2026-04-20Expert Participation2026-04-06 Part II General Provisions relating to computation of gains and acquisitions and disposals of assetsChapter III Computation of gains: General provisions Wasting assets Exemption for certain wasting assets.451Subject to the provisions of this section, no chargeable gain shall accrue on the disposal of, or of an interest in, an asset which is tangible movable property and which is a wasting asset.2Subsection (1) above shall not apply to a disposal of, or of an interest in, an asset—aif, from the beginning of the period of ownership of the person making the disposal to the time when the disposal is made, the asset has been used and used solely for the purposes of a trade, profession or vocation and if that person has claimed or could have claimed any capital allowance in respect of any expenditure attributable to the asset or interest under paragraph (a) or paragraph (b) of section 38(1); orbif the person making the disposal has incurred any expenditure on the asset or interest which has otherwise qualified in full for any capital allowance.3In the case of the disposal of, or of an interest in, an asset which, in the period of ownership of the person making the disposal, has been used partly for the purposes of a trade, profession or vocation and partly for other purposes, or has been used for the purposes of a trade, profession or vocation for part of that period, or which has otherwise qualified in part only for capital allowances—athe consideration for the disposal, and any expenditure attributable to the asset or interest by virtue of section 38(1)(a) and (b), shall be apportioned by reference to the extent to which that expenditure qualified for capital allowances, andbthe computation of the gain shall be made separately in relation to the apportioned parts of the expenditure and consideration, andcsubsection (1) above shall not apply to any gain accruing by reference to the computation in relation to the part of the consideration apportioned to use for the purposes of the trade, profession or vocation, or to the expenditure qualifying for capital allowances.3ABut subsection (3) does not apply in the case of a disposal in relation to which subsection (3B) disapplies subsection (1).3BSubsection (1) does not apply to a disposal of, or of an interest in, an asset if—aat any time in the period of ownership of the person making the disposal, the asset is used for the purposes of a trade, profession or vocation carried on by another person,bas a result of that use, the asset becomes plant,cbut for the asset therefore being regarded under section 44(1)(c) as having a predictable life of less than 50 years, the disposal would not be of, or of an interest in, a wasting asset, anddthe disposal is not within subsection (3C).3CA disposal of, or of an interest in, an asset is within this subsection if the asset is plant used for the purpose of leasing under a long funding lease and—athe disposal takes place after the commencement of the term of the lease but before the termination of the lease, orbthe disposal is the deemed disposal of the asset under section 25A(3)(a) on the termination of the lease.3DSection 25A(5) applies for the purposes of subsection (3C).4Subsection (1) above shall not apply to a disposal of commodities of any description by a person dealing on a terminal market or dealing with or through a person ordinarily engaged in dealing on a terminal market.S. 45(3A)-(3D) inserted (with effect in accordance with s. 40(2) of the amending Act) by Finance Act 2015 (c. 11), s. 40(1)