Capital Gains Tax Act 1979

Section 5.

SCHEDULE 1 Relief for Gains Less than £9,500

Preliminary

1 In this Schedule references to any subsections not otherwise identified are references to subsections of section 5 of this Act

Husband and wife

2 (1) For any year of assessment during which a married woman is living with her husband subsections (1) to (4) shall apply to them as if the amounts of £1,000, £5,000 and £600 were divided between them—

(a) in proportion to their respective taxable amounts for that year (disregarding for this purpose paragraphs (a) and (b) of subsection (4)), or

(b) where the aggregate of those amounts does not exceed £1,000 and allowable losses accruing to either of them in a previous year are carried forward from that year, in such other proportion as they may agree.

(2) Sub-paragraph (1) above shall also apply for any year of assessment during a part of which (being a part beginning with 6th April) a married woman is living with her husband but—

(a) her taxable amount for that year shall not include chargeable gains or allowable losses accruing to her in the remainder of the year, and

(b) subsections (1) to (4) shall apply to her (without the modification in sub-paragraph (1) above) for the remainder of the year as if it were a separate year of assessment.

3 (1) For any year of assessment during which or during a part of which (being a part beginning with 6th April) the individual is a married man whose wife is living with him and in relation to whom section 45(1) of this Act applies subsection (5) shall apply as if—

(a) the chargeable gains accruing to him in the year included those accruing to her in the year or the part of the year, and

(b) all the disposals of assets made by her in the year or the part of the year were made by him.

(2) Subsection (5) shall not apply for any year of assessment during which or during a part of which (being a part beginning with 6th April)—

(a) the individual is a married man whose wife is living with him but in relation to whom the said section 45(1) does not apply, or

(b) the individual is a married woman living with her husband.

Personal representatives

4 For the year of assessment in which an individual dies and for the two next following years of assessment, subsections (1) to (5) shall apply to his personal representatives as they apply to an individual.

Trustees

5 (1) For any year of assessment during the whole or part of which settled property is held on trusts which secure that, during the lifetime of a mentally disabled person or a person in receipt of attendance allowance, any of the property which is applied, and any income arising from the property, is applied only or mainly for the benefit of that person, subsections (1) to (5) shall apply to the trustees of the settlement as they apply to an individual.

(2) In this paragraph “mentally disabled person ” means a person who by reason of mental disorder within the meaning of the [1959 c. 72.] Mental Health Act 1959 is incapable of administering his property or managing his affairs and “ attendance allowance” means an allowance under section 35 of the [1975 c. 14.] Social Security Act 1975 or the [1975 c. 15.] Social Security (Northern Ireland) Act 1975.

6 (1) For any year of assessment during the whole or part of which any property is settled property, not being a year of assessment for which paragraph 5(1) above applies, subsections (1) to (5) shall apply to the trustees of a settlement as they apply to an individual but with the following modifications.

(2) In subsections (1), (4) and (5) for “£1,000” there shall be substituted “£500 ”.

(3) For subsections (2) and (3) there shall be substituted—

“(2) If an individual's taxable amount for a year of assessment exceeds £500 the amount of capital gains tax to which he is chargeable for that year shall not exceed one-half of the excess.”

(4) In subsection (5) for “£5,000” there shall be substituted “£2,500 ”.

(5) This paragraph applies where the settlement was made before 7th June 1978.