CG10252 - Anti-forestalling measures for changes announced at 30 October 2024 Budget – structure of legislation
Source: gov.uk (2025-03-24)


Throughout this manual, all legislative references are to Taxation of Chargeable Gains Act 1992 (https://www.legislation.gov.uk/ukpga/1992/12/contents) (“TCGA92”) unless otherwise stated.

Various changes to Capital Gains Tax (CGT) were announced at Budget 2024, some of which apply to disposals on or after that date, 30 October 2024, and others from those from a later date.

The changes are set out in sections 7 to 12 of Finance Act 2025 (https://www.legislation.gov.uk/ukpga/2025/8/part/1/crossheading/capital-gains-tax-rates-and-reliefs/enacted) (FA 2025) and include anti-forestalling rules which address situations that could result in a tax advantage.

There are two types of anti-forestalling rule concerning –
- The use of unconditional contracts, and
- The making of certain elections to disapply the share reorganisation rules.
CG12049 (https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg10249) provides an overview of these rules and includes links to how they apply to the specific changes.

However, because these rules cover several changes included in FA 2025, they are set out in a number of separate provisions in Schedule 2 FA 2025 (https://www.legislation.gov.uk/ukpga/2025/8/schedule/2/enacted) and several of the key concepts are repeated as a result.

In addition, the anti-forestalling rule that deals with the CGT consequences of the abolition of the Furnished Holiday Lettings regime is set out separately in paragraph 14 of Schedule 5 FA 2025 (https://www.legislation.gov.uk/ukpga/2025/8/schedule/5/enacted). This was included in draft legislation published before Budget 2024, see CG73505 (https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg73505).

The following guidance sets out the structure of the anti-forestalling rules for the CGT changes, all references are to the paragraphs in Schedule 2 FA 2025 (https://www.legislation.gov.uk/ukpga/2025/8/schedule/2/enacted).

Changes to CGT rates from 30 October 2024 and the reduction in the Investors' Relief lifetime cap from that date

Paragraph 7 sets out a rule for unconditional contracts and paragraph 8 a rule for elections to disapply the share reorganisation rule for Investors’ Relief under section 169VT (https://www.legislation.gov.uk/ukpga/1992/12/section/169VT). They apply to contracts entered into or reorganisations undertaken before 30 October 2024. Paragraph 8 also sets out the meaning of "excluded contracts" and explains how claims are to be made.

Changes to the CGT rates for disposals qualifying for either Business Asset Disposal Relief or Investors' Relief from 5 April 2025: unconditional contracts

Paragraph 11 set out a rule for unconditional contracts where a contract is made before 30 October 2024. It applies where the contract is completed on or after 6 April 2025.

Paragraph 12 deals with contracts entered into from 30 October 2025 to 5 April 2025 and completed on or after 6 April 2025.

Paragraph 13 then deals with contracts entered into from 6 April 2025 to 5 April 2026 and completed on or after 6 April 2026.

Paragraphs 14 and 15 then set out the supplementary rules for paragraphs 11 to 13: setting out the meaning of "excluded contracts" and explaining how claims are to be made.

The following rules apply where an election is made from 30 October 2024, rather than from when the Business Asset Disposal Relief or Investors' Relief rates change from 6 April 2025 or 6 April 2026. This is because they also apply the main CGT rates where not all of a gain triggered by the making of an election qualifies for the relief.

Changes to the CGT rates for disposals qualifying for Business Asset Disposal Relief from 5 April 2025: share reorganisations

These provisions deal with reorganisations of share in a single company. They do not apply where a share exchange or company reconstruction is treated as a share reorganisation because of section 135 (https://www.legislation.gov.uk/ukpga/1992/12/section/135) or section 136 (https://www.legislation.gov.uk/ukpga/1992/12/section/136).

Paragraph 15 sets out a rule for share reorganisations where a reorganisation took place before 30 October 2024. It applies where an election under section 169Q (https://www.legislation.gov.uk/ukpga/1992/12/section/169Q) is made on or after 30 October 2024.

Paragraph 16 deals with reorganisations taking place from 30 October 2025 to 5 April 2025. It applies where an election under section 169Q (https://www.legislation.gov.uk/ukpga/1992/12/section/169Q) is made on or after 30 October 2024.

Changes to the CGT rates for disposals qualifying for Business Asset Disposal Relief from 5 April 2025: share exchanges and company reconstructions

These provisions deal with where a share exchange or company reconstruction is treated as a share reorganisation because of section 135 (https://www.legislation.gov.uk/ukpga/1992/12/section/135) or section 136 (https://www.legislation.gov.uk/ukpga/1992/12/section/136).

Paragraph 17 sets out a rule for share reorganisations where a share exchange or company reconstruction took place before 30 October 2024. It applies where an election under section 169Q (https://www.legislation.gov.uk/ukpga/1992/12/section/169Q) is made on or after 30 October 2024.

Paragraph 18 deals with share exchanges or company reconstructions taking place from 30 October 2025 to 5 April 2025. It applies where an election under section 169Q (https://www.legislation.gov.uk/ukpga/1992/12/section/169Q) is made on or after 30 October 2024.

Changes to the CGT rates for disposals qualifying for Investors' Relief from 5 April 2025: share exchanges and company reconstructions

These provisions deal with where a share exchange or company reconstruction is treated as a share reorganisation because of section 135 (https://www.legislation.gov.uk/ukpga/1992/12/section/135) or section 136 (https://www.legislation.gov.uk/ukpga/1992/12/section/136).

Paragraph 19 sets out a rule for share reorganisations where a share exchange or company reconstruction took place before 30 October 2024. It applies where an election under section 169VT (https://www.legislation.gov.uk/ukpga/1992/12/section/169VT) is made on or after 30 October 2024.

Paragraph 20 deals with share exchanges or company reconstructions taking place from 30 October 2025 to 5 April 2025. It applies where an election under section 169VT (https://www.legislation.gov.uk/ukpga/1992/12/section/169VT) is made on or after 30 October 2024.