4 Rates of capital gains tax.U.K.
(1)Subject to the provisions of this section F1... , the rate of capital gains tax in respect of gains accruing to a person in a year of assessment shall be equivalent to the [F2lower rate] of income tax for the year.
[F3(1AA)The rate of capital gains tax in respect of gains accruing to—
(a)the trustees of a settlement, or
(b)the personal representatives of a deceased person,
in a year of assessment shall be equivalent to the rate which for that year is [F4the rate applicable to trusts under section 686 of the Taxes Act].]
F5(1A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F5(1B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2)If income tax is chargeable at the higher rate [F6or the Schedule F upper rate] in respect of any part of the income of an individual for a year of assessment, the rate of capital gains tax in respect of gains accruing to him in the year shall be equivalent to the higher rate.
(3)If no income tax is chargeable at the higher rate [F7or the Schedule F upper rate] in respect of the income of an individual for a year of assessment, but the amount on which he is chargeable to capital gains tax exceeds the unused part of his basic rate band, the rate of capital gains tax on the excess shall be equivalent to the higher rate of income tax for the year.
F8(3A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
F8(3B). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(4)The reference in subsection (3) above to the unused part of an individual’s basic rate band is a reference to the amount by which F9... the basic rate limit exceeds his total income (as reduced by any deductions made in accordance with the Income Tax Acts).
Textual Amendments
F1Words in s. 4(1) repealed (with effect in accordance with s. 120(2) of the amending Act) by Finance Act 1998 (c. 36), Sch. 27 Pt. III(29)
F2Words in s. 4(1) substituted (with effect in accordance with s. 26(6) of the amending Act) by Finance Act 1999 (c. 16), s. 26(2)
F3S. 4(1AA) inserted (with application in accordance with s. 120(2) of the amending Act) by Finance Act 1998 (c. 36), s. 120(1)
F4Words in s. 4(1AA) substituted (with effect in accordance with s. 26(6) of the amending Act) by Finance Act 1999 (c. 16), s. 26(3)
F5S. 4(1A)(1B) repealed (with effect in accordance with s. 26(6) of the amending Act) by Finance Act 1999 (c. 16), s. 26(4), Sch. 20 Pt. III(1)
F6Words in s. 4(2) inserted (with effect in accordance with Sch. 4 para. 24(6) of the amending Act) by Finance (No. 2) Act 1997 (c. 58), Sch. 4 para. 24(2)
F7Words in s. 4(3) inserted (with effect in accordance with Sch. 4 para. 24(6) of the amending Act) by Finance (No. 2) Act 1997 (c. 58), Sch. 4 para. 24(3)
F8S. 4(3A)(3B) repealed (with effect in accordance with s. 26(6) of the amending Act) by Finance Act 1999 (c. 16), s. 26(4), Sch. 20 Pt. III(1)
F9Words in s. 4(4) repealed (with effect in accordance with s. 26(6) of the amending Act) by Finance Act 1999 (c. 16), s. 26(5), Sch. 20 Pt. III(1)