Capital Gains Tax Act 1979 (repealed 6.3.1992)

Capital gains tax U.K.

2 Persons chargeable. U.K.

(1) Subject to any exceptions provided by this Act, a person shall be chargeable to capital gains tax in respect of chargeable gains accruing to him in a year of assessment during any part of which he is resident in the United Kingdom, or during which he is ordinarily resident in the United Kingdom.

(2) This section is without prejudice to the provisions of section 12 below (non-resident with UK branch or agency), and of section 38 of the M1 Finance Act 1973 (territorial sea of the United Kingdom).

Modifications etc. (not altering text)

C1 See also Finance Act 1981 (c. 35, SIF 63:2), s. 80

C2 See— Finance Act 1980 (c. 48, SIF 63:1), s. 36(3); Finance Act 1981 (c. 35, SIF 63:2), s. 135; Finance Act 1982 (c. 39, SIF 63:2), s. 148; Finance Act 1985 (c. 54, SIF 63:2), ss. 71, 72 and Sch. 21

C3 See— Finance Act 1973 (c. 51, SIF 63:1), s. 38; Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 761

Marginal Citations

M1 1973 c. 51.

3 F1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F1 S. 3 repealed by Finance Act 1988 (c. 39, SIF 63:1, 2), s. 148 and Sch. 14 Pt. VII in relation to disposals on or after 6th April 1988

4 Gains chargeable to tax. U.K.

(1) Capital gains tax shall be charged on the total amount of chargeable gains accruing to the person chargeable in the year of assessment, after deducting—

(a) any allowable losses accruing to that person in that year of assessment, and

(b) so far as they have not been allowed as a deduction from chargeable gains accruing in any previous year of assessment, any allowable losses accruing to that person in any previous year of assessment (not earlier than the year 1965-66).

[F2 (2) In the case of a woman who in a year of assessment is a married woman living with her husband any allowable loss which, under subsection (1) above, would be deductible from the chargeable gains accruing in that year of assessment to the one but for an insufficiency of chargeable gains shall, for the purposes of that subsection, be deductible from chargeable gains accruing in that year of assessment to the other:

Provided that this subsection shall not apply in relation to losses accruing in a year of assessment to either if, before 6th July in the year next following that year of assessment, an application is made by the man or the wife to the inspector in such form and manner as the Board may prescribe.]

Textual Amendments

F2 S. 4(2) repealed by Finance Act 1988 (c. 39, SIF 63;1, 2), s. 148 and Sch. 14 Pt. VIII from 1990–91 (and see Finance Act 1988 (c. 39, SIF 63;1, 2), ss. 98 and 102 for 1988–89 and subsequent years)

Modifications etc. (not altering text)

C4 See— Development Land Tax Act 1976 (c. 24), s. 34 and Sch. 6 Pt. I (which Act was repealed by Finance Act 1985 (c. 54, SIF 63:2), ss. 93, 98(6) and Sch. 27 Pt. X); Income and Corporation Taxes Act 1988 (c. 1, SIF, 63:1), s. 574(1)

C5 S. 4(2) modified by S.I. 1991/851, reg. 9, Sch. 2.

C6 S. 4(2) modified (28.3.1992) by S.I. 1992/511, reg. 9, Sch. 2

5 Exemption for first £3,000 of gains U.K.

[F3 (1) An individual shall not be chargeable to capital gains tax in respect of so much of his taxable amount for any year of assessment as does not exceed [F4 the exempt amount for the year].]

[F5 (1A) Subject to subsection (1B) below, the exempt amount for any year of assessment shall be £5,000.

(1B) If the retail prices index for the month of December preceding the year 1983-84 or any subsequent year of assessment is higher than it was for the previous December, then, unless Parliament otherwise determines, subsection (1A) above shall have effect for that year as if for the amount specified in that subsection as it applied for the previous year (whether by virtue of this subsection or otherwise) there were substituted an amount arrived at by increasing the amount for the previous year by the same percentage as the percentage increase in the retail prices index and, if the result is not a multiple of £100, rounding it up to the nearest amount which is such a multiple.

(1C) The Treasury shall, before the year 1983–84 and each subsequent year, make an order specifying the amount which by virtue of this section is the exempt amount for that year ; and any such order shall be made by statutory instrument.]

(4) For the purposes of this section an individual’s taxable amount for a year of assessment is the amount on which he is chargeable under section 4(1) above for that year but—

(a) where the amount of chargeable gains less allowable losses accruing to an individual in any year of assessment does not exceed [F4 the exempt amount for the year], no deduction from that amount shall be made for that year in respect of allowable losses carried forward from a previous year or carried back from a subsequent year in which the individual dies, and

(b) where the amount of chargeable gains less allowable losses accruing to an individual in any year of assessment exceeds [F4 the exempt amount for the year], the deduction from that amount for that year in respect of allowable losses carried forward from a previous year or carried back from a subsequent year in which the individual dies shall not be greater than the excess.

(5) Where in a year of assessment—

(a) the amount of chargeable gains accruing to an individual does not exceed [F6 the exempt amount for the year], and

(b) the aggregate amount or value of the consideration for all the disposals of assets made by him (other than disposals gains accruing on which are not chargeable gains) does not exceed [F7 an amount equal to twice the exempt amount for the year];

a statement to the effect of paragraphs (a) and (b) above shall, unless the inspector otherwise requires, be sufficient compliance with any notice under section 8 of the M2 Taxes Management Act 1970 requiring the individual to make a return of the chargeable gains accruing to him in that year.

(6) Schedule 1 to this Act shall have effect as respects the application of this section to [F8 husbands and wives], personal representatives and trustees.

Subordinate Legislation Made

P1 S. 5: for previous exercises of this power see Index to Government Orders.

P2 S. 5(1C) power exercised by S.I. 1991/736.

Textual Amendments

F3 S. 5(1) substituted for s. 5(1)–(3) by Finance Act 1980 (c. 48, SIF 63:1), s. 77(2) for 1980–81 et seq.

F4 Words substituted by Finance Act 1982 (c. 39, SIF 63:2), s. 80(1)(a) for 1982–83 et seq.

F5 S. 5(1A)–(1C) inserted by Finance Act 1982 (c. 39, SIF 63:2), s. 80(2) for 1982–83 et seq.

F6 Words substituted by Finance Act 1982 (c. 39, SIF 63:2), s. 80(1)(a) for 1982–83 et seq.

F7 Words substituted by Finance Act 1982 (c. 39, SIF 63:2), s. 80(1)(b) for 1982–83 et seq.

F8 Words repealed by Finance Act 1988 (c. 39, SIF 63:1, 2), s. 148 and Sch. 14 Pt. VIII from 1990–91

Modifications etc. (not altering text)

C7 S. 5 amended (1990–91) by Finance Act 1990 (c. 29, SIF 63:2), s. 72

C8 £5,000 for 1988–89 and 1989–90

C9 S. 5(1B) does not apply for 1988–89 and 1989–90

C10 S. 5(1B) excluded (1990–91) by Finance Act 1990 (c.29, SIF 63:2), s. 72

Marginal Citations

M2 1970 c. 9.

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Textual Amendments

F9 S. 6 repealed by Finance Act 1984 (c. 43, SIF 63:2), ss. 63(1), 128(6), Sch. 23 Pt. VIII in relation to disposals on or after 6 April 1984

7 Time for payment of tax. U.K.

Capital gains tax assessed on any person in respect of gains accruing in any year shall be payable by that person [F10 on or before 1st December following the end of that year], or at the expiration of a period of thirty days beginning with the date of the issue of the notice of assessment, whichever is the later.

Textual Amendments

F10 Words substituted by Finance Act 1980 (c. 48, SIF 63:2), s. 61(2) for 1980–81 et seq.

Modifications etc. (not altering text)

C11 See Finance Act 1989 (c. 26, SIF 63:2), s. 134

[F11 7A Payment by instalments of tax on gifts. U.K.

(1) Subsection (2) below applies where—

(a) the whole or any part of any assets to which this section applies is disposed of by way of gift or is deemed to be disposed of under section 54(1) or 55(1) below, and

(b) the disposal is one—

(i) to which neither section 126(3) nor section 147A(3) below applies (or would apply if a claim were duly made), or

(ii) to which either of those sections does apply but on which the held-over gain (within the meaning of the section applying) is less than the chargeable gain which would have accrued on that disposal apart from that section.

(2) Where this subsection applies, the capital gains tax chargeable on a gain accruing on the disposal may, if the person paying it by notice in writing to the inspector so elects, be paid by ten equal yearly instalments.

(3) The assets to which this section applies are—

(a) land or an estate or interest in land,

(b) any shares or securities of a company which, immediately before the disposal, gave control of the company to the person by whom the disposal was made or deemed to be made, and

(c> any shares or securities of a company not falling under paragraph (b) above and not quoted on a recognised stock exchange nor dealt in on the Unlisted Securities Market.

(4) Where tax is payable by instalments by virtue of this section, the first instalment shall be due on the day on which the tax would be payable apart from this section.

(5) Subject to the following provisions of this section—

(a) tax payable by instalments by virtue of this section shall carry interest in accordance with Part IX (except section 88) of the Taxes Management Act 1970, and

(b) the interest on the unpaid portion of the tax shall be added to each instalment and paid accoringly.

(6) Tax payable by instalments by virtue of this section which is for the time being unpaid, with interest to the date of payment, may be paid at any time.

(7) Tax which apart from this subsection would be payable by instalments by virtue of this section and which is for the time being unpaid, with interest to the date of payment, shall become due and payable immediately if—

(a) the disposal was by way of gift to a person connected with the donor or was deemed to be made under section 54(1) or 55(1) below, and

(b) the assets are disposed of for valuable consideration under a subsequent disposal (whether or not the subsequent disposal is made by the person who acquired them under the first disposal).]

Textual Amendments

F11 S. 7A inserted by Finance Act 1989 (c. 26, SIF 63:2), s. 124 and Sch. 14 para. 5 in relation to disposals on or after 14th March 1989 (except where relief given under Finance Act 1980 (c. 48), s. 79 in respect of a disposal before that date)

8, 9. F12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . U.K.

Textual Amendments

F12 Ss. 8, 9 repealed by Finance Act 1984 (c. 43, SIF 63:2), ss. 63(1), 128(6) and Sch. 23 Pt. VIII in relation to disposals on or after 6 April 1984