Finance Act 1985

Part IV U.K. Identification of Securities etc.

16 (1) This Part of this Schedule applies where a person disposes of securities on or after the 1985 date, and in such a case the securities disposed of shall be identified in accordance with the provisions of this Part of this Schedule with securities of the same class acquired by him which could be comprised in that disposal.

(2) The provisions of this Part of this Schedule apply notwithstanding that securities disposed of are otherwise identified by the disposal or by a transfer or delivery giving effect to it (but so that where a person disposes of securities in one capacity, they shall not be identified with securities which he holds or can dispose of only in some other capacity).

(3) Notwithstanding anything in sub-paragraphs (1) and (2) above, the provisions of this Part of this Schedule do not apply to shares in respect of which relief under [F1 Chapter II of Part IV of the Finance Act 1981 or] [Chapter III of Part VIII of the Taxes Act F2 ](relief for investment in corporate trades) has been given and not withdrawn.

Textual Amendments

F1 Words in Sch. 19 para. 16(3) inserted (25.7.1991) by Finance Act 1991 (c. 31, SIF 63:2) s. 99(2)(4) applying in relation to disposals on or after 19.3.1991

F2 Income and Corporation Taxes Act 1988 Sch. 29 para. 32

17 (1) Part III of this Schedule shall have effect with respect to securities in place of section 65 of the M1 Capital Gains Tax Act 1979 (pooling) but subject to—

(a) section 66 of that Act (disposals on or before day of acquisition); and

(b) section 58 of the M2 Finance (No. 2) Act 1975 (disposal of certain shares and securities within prescribed period of acquisition).

(2) In relation to disposals of securities on or after the 1985 date, section 66 of the Capital Gains Tax Act 1979 shall have effect—

(a) as if the reference in subsection (2)(a) to provisions of Schedule 5 to that Act included a reference to paragraph 19(3) below; and

(b) as if the reference in subsection (2)(b) to section 65 of that Act were a reference to Part III of this Schedule.

Marginal Citations

M1 1979 c. 14.

M2 1975 c. 45.

18 (1) Without prejudice to section 66 of the Capital Gains Tax Act 1979 if, within a period of ten days, a number of securities are acquired and subsequently a number of securities are disposed of and, apart from this paragraph,—

(a) the securities acquired would increase the size of, or constitute a new holding, and

(b) the securities disposed of would decrease the size of, or extinguish, the same new holding,

then, subject to sub-paragraphs (2) and (3) below, the securities disposed of shall be identified with the securities acquired and none of them shall be regarded as forming part of an existing new holding or constituting a new holding.

(2) If, in a case falling within sub-paragraph (1) above, the number of securities acquired exceeds the number disposed of,—

(a) the excess shall be regarded as forming part of an existing new holding or, as the case may be, as constituting a new holding; and

(b) if the securities acquired were acquired at different times (within the ten days referred to in sub-paragraph (1) above) the securities disposed of shall be identified with securities acquired at an earlier time rather than with securities acquired at a later time.

(3) If, in a case falling within sub-paragraph (1) above, the number of securities disposed of exceeds the number acquired, the excess shall not be identified in accordance with that sub-paragraph.

(4) Securities which, by virtue of this paragraph, do not form part of or constitute a new holding shall be treated for the purposes of section 87(3) of the M3 Finance Act 1982 (cases where idexation allowance is nil) as relevant securities within the meaning of section 88 of that Act .

Modifications etc. (not altering text)

C1 Finance Act 1988 (c. 39, SIF63:1, 2), s. 113—paragraphs 18, 22 and 23 not to apply to certain disposals of building society and industrial and provident society shares on or after 4 July 1987. Finance Act 1990 (c. 29,SIF 63:1, 2), s. 54—paras. 1(3), 2. 5, 7(3), 8(1)(b) and (c), 11 to 15, 18, 22 and 23 not to apply to certain building society shares etc. held by collective investment schemes and disposed of on or after 20 March 1990.

Marginal Citations

M3 1982 c. 39.

19 (1) The identification rules set out in sub-paragraphs (2) and (3) below have effect subject to section 66 of the M4 Capital Gains Tax Act 1979 but, subject to that, have priority according to the order in which they are so set out.

(2) Securities disposed of shall be identified with securities forming part of a new holding, within the meaning of Part III of this Schedule, rather than with other securities.

(3) Securities disposed of shall be identified with securities forming part of a 1982 holding, within the meaning of Part II of this Schedule, rather than with other securities and, subject to that, shall be identified with securities acquired at a later time rather than with securities acquired at an earlier time.

Marginal Citations

M4 1979 c. 14.