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A taxpayer owned an asset from the start of taper relief in 1998. It was a business asset throughout.
In the summer of 2006 he sold the asset but he reserved the right to buy it back at the same price if a certain set of circumstances came about in the next twelve months.
That set of circumstances occurred six months later. The taxpayer bought the asset back and sold it again three months later for a significantly greater gain than on the first sale. No form of rollover or deferral relief is available.
The question we need to resolve is the rate of taper relief available on the second sale. This is linked to the ‘qualifying holding period’.
The qualifying holding period (via TCGA 1992 Sch A1 para 2) is defined as beginning with ‘the later of 6 April 1998 and the time when the asset disposed...
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