(1)In this Act “market value ” in relation to any assets means the price which those assets might reasonably be expected to fetch on a sale in the open market.
(2)In estimating the market value of any assets no reduction shall be made in the estimate on account of the estimate being made on the assumption that the whole of the assets is to be placed on the market at one and the same time.
(3)The market value of shares or securities listed in The Stock Exchange Daily Official List shall, except where in consequence of special circumstances prices quoted in that List are by themselves not a proper measure of market value, be as follows—
(a)the lower of the two prices shown in the quotations for the shares or securities in The Stock Exchange Daily Official List on the relevant date plus one-quarter of the difference between those two figures, or
(b)halfway between the highest and lowest prices at which bargains, other than bargains done at special prices, were recorded in the shares or securities for the relevant date,
choosing the amount under paragraph (a) if less than that under paragraph (b), or if no such bargains were recorded for the relevant date, and choosing the amount under paragraph (b) if less than that under paragraph (a):
Provided that—
(i)this subsection shall not apply to shares or securities for which The Stock Exchange provides a more active market elsewhere than on the London trading floor, and
(ii)if the London trading floor is closed on the relevant date the market value shall be ascertained by reference to the latest previous date or earliest subsequent date on which it is open, whichever affords the lower market value.
(4)In this Act “market value ” in relation to any rights of unit holders in any unit trust scheme the buying and selling prices of which are published regularly by the managers of the scheme shall mean an amount equal to the buying price (that is the lower price) so published on the relevant date, or if none were published on that date, on the latest date before.
(5)In relation to an asset of a kind the sale of which is subject to restrictions imposed under the [1947 c. 14.] Exchange Control Act 1947 such that part of what is paid by the purchaser is not retainable by the seller the market value, as arrived at under subsection (1), subsection (3) or subsection (4) above, shall be subject to such adjustment as is appropriate having regard to the difference between the amount payable by a purchaser and the amount receivable by a seller.
(6)The provisions of this section, with sections 151 to 153 below, have effect subject to Part I of Schedule 6 to this Act (market value at a time before the commencement of this Act).
If a person is given, or acquires from one or more persons with whom he is connected, by way of two or more gifts or other transactions, assets of which the aggregate market value, when considered separately in relation to the separate gifts or other transactions, is less than their aggregate market value when considered together, then for the purposes of this Act their market value, where relevant, shall be taken to be the larger market value, to be apportioned rateably to the respective disposals.
(1)The provisions of subsection (3) below shall have effect in any case where, in relation to an asset to which this section applies, there falls to be determined by virtue of section 150(1) above the price which the asset might reasonably be expected to fetch on a sale in the open market.
(2)The assets to which this section applies are shares and securities which are not quoted on a recognised stock exchange, within the meaning of section 535 of the Taxes Act, at the time as at which their market value for the purposes of tax on chargeable gains falls to be determined.
(3)For the purposes of a determination falling within subsection (1) above, it shall be assumed that, in the open market which is postulated for the purposes of that determination, there is available to any prospective purchaser of the asset in question all the information which a prudent prospective purchaser of the asset might reasonably require if he were proposing to purchase it from a willing vendor by private teatry and at arm's length.
Where on the death of any person capital transfer tax is chargeable on the value of his estate immediately before his death and the value of an asset forming part of that estate has been ascertained (whether in any proceedings or otherwise) for the purposes of that tax, the value so ascertained shall be taken for the purposes of this Act to be the market value of that asset at the date of the death.
Any assessment to income tax or decision on a claim under the Income Tax Acts, and any decision on an appeal under the Income Tax Acts against such an assessment or decision, shall be conclusive so far as under Chapter II of Part II of this Act, or any other provision of this Act, liability to tax depends on the provisions of the Income Tax Acts.
(1)In this Act, unless the context otherwise requires—
“allowable loss ” has the meaning given by section 29 above,
“the Board ” means the Commissioners of Inland Revenue,
“chargeable gain ” has the meaning given by section 28(2) above,
“chargeable period ” means a year of assessment or an accounting period of a company for purposes of corporation tax,
“close company ” has the meaning given by sections 282 and 283 of the Taxes Act,
“company ” includes any body corporate or unincorporated association but does not include a partnership, and shall be construed in accordance with section 93 above (application of Act to unit trusts),
“control ” shall be construed in accordance with section 302 of the Taxes Act,
“inspector ” means any inspector of taxes,
“land ” includes messuages, tenements, and hereditaments, houses and buildings of any tenure,
“married woman living with her husband ”: see subsection (2) below,
“part disposal ” has the meaning given by section 19(2) above,
“personal representatives ” has the meaning given by section 432(4) of the Taxes Act,
“quoted ” on a stock exchange, or recognised stock exchange, in the United Kingdom: see subsection (3) below,
“the Taxes Act ” means the [1970 c. 10.] Income and Corporation Taxes Act 1970,
“trade ” has the same meaning as in the Income Tax Acts,
“trading stock ” has the meaning given by section 137(4) of the Taxes Act,
“wasting asset ” has the meaning given by section 37 above and paragraph 1 of Schedule 3 to this Act,
“year of assessment ” means, in relation to capital gains tax, a year beginning on 6th April and ending on 5th April in the following calendar year, and “1979-80” and so on indicate years of assessment as in the Income Tax Acts.
(2)References in this Act to a married woman living with her husband shall be construed in accordance with section 42(1)(2) of the Taxes Act
(3)References in this Act to quotation on a stock exchange in the United Kingdom or a recognised stock exchange in the United Kingdom shall be construed as references to listing in the Official List of The Stock Exchange.
(4)The Table below indexes other general definitions in this Act.
| Expression defined | Reference |
|---|---|
| “Absolutely entitled as against the trustee ” | S. 46(2). |
| “Authorised unit trust ” | S. 92. |
| “Branch or agency ” | S. 12(3). |
| “Class ”, in relation to shares or securities | S. 64(1). |
| “Connected ”, in references to persons being connected with one another. | S. 63. |
| “Court investment fund ” | S. 92. |
| “Gilt-edged securities ” | Schedule 2. |
| “Investment trust” | S. 92. |
| “Issued ”, in relation to shares or debentures | S. 64(2). |
| “Lease ” and cognate expressions | Paragraph 10(1) of Schedule 3. |
| “Legatee ” | S. 47(2)(3). |
| “Market value ” | Ss. 150 to 153; Part I of Schedule 6. |
| “Resident ” and “ordinarily resident ” | S. 18(1). |
| “Settled property ” | S. 51. |
| “Shares ” | S. 64(1). |
| “Unit trust scheme ” | S. 92. |
(5)References in the Income Tax Acts to profits or gains shall not include references to chargeable gains.