HMRC’s guidance is clear that where a capital sum is derived from an asset, the relevant legislation treats the owner as having made a disposal for capital gains purposes.
The legislation contained in s22 TCGA92 states that there is:
“…..a disposal of assets by their owner where any capital sum is derived from assets notwithstanding that no asset is acquired by the person paying the capital sum…..”
There are occasions when a person may receive a capital sum even though a natural disposal of an asset has not occurred, for example, on receiving compensation for damage to an asset or a sum of money from another person for the right to use or exploit an asset.
HMRC’s internal manual states that as the word ‘disposal’ is not expressly defined in TCGA92 it must be given its normal everyday meaning. Therefore, disposals for capital gains purposes include natural disposals and part disposals of assets.