Income and Corporation Taxes Act 1988

Charge to tax etc. U.K.

1 (1) Subject to sub-paragraph (2) below, profits and gains arising from a transaction to which this Schedule applies (including those which, apart from this sub-paragraph, would be taken to be of a capital nature) shall be treated, when realised—

(a) as income of the person by whom they are realised; and

(b) as chargeable to tax under Case VI of Schedule D for the chargeable period in which they are realised.

(2) Sub-paragraph (1) above does not apply to—

(a) so much of any profits or gains arising to a person from a transaction as are charged to tax in his case under Case I or V of Schedule D;

(b) F1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) F1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) For the purposes of this Schedule the profits and gains arising from a transaction to which this Schedule applies are to be taken to be realised at the time when the disposal comprised in the transaction takes place.

(5) For the purposes of sections 392 F3 . . . any loss in a transaction to which this Schedule applies is to be taken to be sustained at the time when, in accordance with sub-paragraph (4) above, any profits or gains arising from that transaction would have been realised.

(6) Subject to sub-paragraph (7) below, the following, namely—

(a) profits and gains to which sub-paragraph (1) above applies, and

(b) losses in transactions the profits and gains from which (if there were any) would be profits and gains to which that sub-paragraph applies,

shall not be brought into account for the purposes of income tax F4 . . . or capital gains tax except by virtue of this Schedule and, in the case of losses, section 392 F4 . . . .

(7) F5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Sch. 5AA para. 1(2)(b)(c) repealed (with effect in accordance with s. 83(3) of the repealing Act) by Finance Act 2002 (c. 23), Sch. 27 para. 14(2)(a), Sch. 40 Pt. 3(13), Note (with Sch. 28)

F2 Sch. 5AA para. 1(3) repealed (with effect in accordance with s. 83(3) of the repealing Act) by Finance Act 2002 (c. 23), Sch. 27 para. 14(2)(b), Sch. 40 Pt. 3(13), Note (with Sch. 28)

F3 Words in Sch. 5AA para. 1(5) repealed (with effect in accordance with s. 83(3) of the repealing Act) by Finance Act 2002 (c. 23), Sch. 27 para. 14(2)(c), Sch. 40 Pt. 3(13), Note (with Sch. 28)

F4 Words in Sch. 5AA para. 1(6) repealed (with effect in accordance with s. 83(3) of the repealing Act) by Finance Act 2002 (c. 23), Sch. 27 para. 14(2)(d), Sch. 40 Pt. 3(13), Note (with Sch. 28)

F5 Sch. 5AA para. 1(7) repealed (with effect in accordance with s. 83(3) of the repealing Act) by Finance Act 2002 (c. 23), Sch. 27 para. 14(2)(e), Sch. 40 Pt. 3(13), Note (with Sch. 28)

Modifications etc. (not altering text)

C1 Sch. 5AA para. 1(6)(7) modified (19.3.1997) by Finance Act 1997 (c. 16), s. 80(7)