Finance Act 1974

39 Exemption or relief for small disposals

(1) If the aggregate amount or value of the net proceeds of all the disposals of interests in land to which section 38 of this Act applies made by a person in a chargeable period does not exceed—

(a) in the case of an individual or the personal representatives of a deceased person as such, £10,000 ; or

(b) in the case of a company or the trustees of a settlement, £1,000,

no part of the gain accruing to that person on any of those disposals shall be a development gain.

(2) If, in a case not falling within subsection (1) above, the aggregate amount or value of the net proceeds of all the disposals of interests in land to which section 38 of this Act applies made by a person in a chargeable period is less than—

(a) in the case of an individual or the personal representatives of a deceased person as such, £20,000 ; or

(b) in the case of a company or the trustees of a settlement, £2,000,

then the total of the development gains accruing to that person in respect of those disposals shall be treated for the purposes of the Tax Acts as reduced to a fraction of their actual total, and that fraction shall be—

(i) in the case of an individual or the personal representatives of a deceased person as such, the fraction of which the numerator is the amount by which the aggregate amount or value of the said net proceeds exceeds £10,000 and the denominator is £10,000 ; or

(ii) in the case of a company or the trustees of a settlement, the fraction of which the numerator is the amount by which that aggregate amount or value exceeds £1,000 and the denominator is £1,000 ;

and the total of the chargeable gains accruing to him on those disposals shall be treated as increased by the amount of that reduction.

(3) For the purposes of this section disposals made by a man to his wife living with him or by her to him shall be disregarded, and all other disposals made by either shall be treated as made by one individual.

(4) Where two or more persons carry on a trade or business in partnership, then, for the purposes of this section—

(a) notwithstanding section 45(7)(b) of the [1965 c. 25.] Finance Act 1965, the firm shall be treated as a single individual, and all disposals of partnership assets by the firm shall be treated as made by that individual;

(b) a change in the persons carrying on the trade or business shall be disregarded if, assuming an election under section 154(2) of the Taxes Act to have been duly made, the trade or business would not by virtue of section 154(1) of that Act be treated as discontinued by reason of the change ; and

(c) for any year of assessment in or in a part of which a company is a member of the partnership, subsections (1) and (2) above shall apply as if in paragraph (a) above for the words " a single individual" and " that individual" there were substituted respectively the words " a company " and " that company ".

(5) Schedule 5 to this Act shall have effect for supplementing this section.