Taxation of Chargeable Gains Act 1992

3 (1) A person who has been concerned in the carrying on of a business shall be treated as having retired on ill-health grounds if, F1 ...— U.K.

(a) [F2 he] has ceased to be engaged in and, by reason of ill-health, is incapable of engaging in work of the kind which he previously undertook in connection with that business; and

(b) [F2 he] is likely to remain permanently so incapable.

(2) In sub-paragraph (1) above, the reference to a person being concerned in the carrying on of a business is a reference to his being so concerned personally or as a member of a partnership carrying on the business; and the business which is relevant for the purposes of the provisions referred to in paragraph 1(1) above is that referred to—

(a) in subsection (3) or subsection (4) of section 163 in relation to a material disposal of business assets;

(b) in subsection (5) of section 164 in relation to a trustees’ disposal; and

(c) in subsection (7) of section 164 in relation to an associated disposal.

(3) A person who has been a [F3 full-time working officer or employee] of a company or of two or more companies shall be treated as having retired on ill-health grounds if, F4 ...—

(a) [F5 he] has ceased to serve and, by reason of ill-health, is incapable of serving that company or, as the case may be, those companies in a managerial or technical capacity; and

(b) [F5 he] is likely to remain permanently incapable of serving in such a capacity that company or those companies (as the case may be) or any other company engaged in business of a kind carried on by that company or those companies.

(4) In relation to an employee’s disposal, a person who has been exercising any office or employment shall be treated as having retired on ill-health grounds if, F4 ...—

(a) [F6 he] has ceased to exercise and, by reason of ill-health, is incapable of exercising that office or employment; and

(b) [F6 he] is likely to remain permanently so incapable.

[F7 (5) In any case where—

(a) an officer of the Board gives notice to any person under section 9A(1) of, or paragraph 5(1) of Schedule 1A to, the Management Act (notice of intention to enquire into a return or claim or an amendment of a return or claim), and

(b) the enquiry to any extent relates to the question whether or not a person falls to be treated as having retired on ill-health grounds by virtue of the foregoing provisions of this paragraph,

then, without prejudice to any other powers of such an officer in relation to such an enquiry, an officer of the Board may at the same or any subsequent time by notice in writing require that person, within such time (which shall not be less than 30 days) as may be specified in the notice, to produce such evidence relating to the question mentioned in paragraph (b) above as may reasonably be specified in the notice.]

Textual Amendments

F1 Words in Sch. 6 para. 3(1) repealed (with effect in accordance with s. 134(2) of the amending Act) by Finance Act 1996 (c. 8), Sch. 20 para. 66(2)(a), Sch. 41 Pt. V(10)

F2 Word in Sch. 6 para. 3(1) substituted (with effect in accordance with s. 134(2) of the amending Act) by Finance Act 1996 (c. 8), Sch. 20 para. 66(2)(b)

F3 Words in Sch. 6 para. 3(3) substituted (27.7.1993 with effect in relation to any disposal made on or after 16.3.1993 as mentioned in s. 87(2)) by 1993 c. 34, s. 87, Sch. 7 Pt. I para. 2(1)

F4 Words in Sch. 6 para. 3(3)(4) repealed (with effect in accordance with s. 134(2) of the amending Act) by Finance Act 1996 (c. 8), Sch. 20 para. 66(2)(a), Sch. 41 Pt. V(10)

F5 Word in Sch. 6 para. 3(3) substituted (with effect in accordance with s. 134(2) of the amending Act) by Finance Act 1996 (c. 8), Sch. 20 para. 66(2)(b)

F6 Word in Sch. 6 para. 3(4) substituted (with effect in accordance with s. 134(2) of the amending Act) by Finance Act 1996 (c. 8), Sch. 20 para. 66(2)(b)

F7 Sch. 6 para. 3(5) added (with effect in accordance with s. 134(2) of the amending Act) by Finance Act 1996 (c. 8), Sch. 20 para. 66(3)