Finance Act 2008

Abolition of taper relief

43 (1) Section 279C (effect of election under section 279A) is amended as follows.

(2) For subsections (3) and (4) substitute—

“(3) The amount of the relevant loss that falls to be deducted (in accordance with section 2(2)(a)) from the chargeable gains of the first eligible year is limited to the first year limit.

(4) The first year limit is the amount calculated under section 2(2) (read, where appropriate, with section 2(4)(a)) for the first eligible year.

(4A) For the purpose of making that calculation—

(a) no account is to be taken of the relevant loss, but

(b) the effect of any previous election under section 279A is to be taken into account.”

(3) In subsection (6)(c), for “the provisions specified in subsection (8) below” substitute “amounts of chargeable gains treated as accruing in that later year by virtue of section 87 or 89(2) (read, where appropriate, with section 10A)”.

(4) Omit subsection (8).

(5) Omit subsection (10).