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(1)This section applies where an individual is chargeable to capital gains tax in respect of gains accruing in a tax year and—
(a)no income tax is chargeable at the higher rate, the Welsh higher rate or the dividend upper rate in respect of the income of the individual for the tax year,
(b)the amount on which the individual is chargeable to capital gains tax for the tax year (“the chargeable gains amount”) exceeds the unused part of the individual's basic rate band, and
(c)all or part of the chargeable gains amount consists of upper rate gains.
(2)In the following provisions of this section “the available gains” means the gains on which the individual is chargeable to capital gains tax for the tax year, excluding any special rate gains.
(3)The available gains not used by the individual under subsection (4) are to be charged to capital gains tax—
(a)to the extent that they consist of upper rate gains, at the rate in section 4(4)(a);
(b)to the extent that they consist of gains which are not upper rate gains, at the rate in section 4(5).
(4)The individual may, subject to subsection (5) (which limits the overall amount that can be used under this subsection)—
(a)use any of the available gains that are upper rate gains to be charged at the rate in section 4(2)(a);
(b)use any of the available gains that are not upper rate gains to be charged at the rate in section 4(2)(b).
(5)The total amount of gains used under subsection (4) must equal the qualifying amount.
(6)The “qualifying amount” is the unused part of the individual's basic rate band less the total amount of any special rate gains.
(7)If special rate gains are included in the chargeable gains amount, subsection (4) applies only if the unused part of the individual's basic rate band exceeds the total amount of the special rate gains.
(8)In this section—
“upper rate gains” has the same meaning as in section 4;
“special rate gains” has the same meaning as in section 4(6);
“the unused part of the individual's basic rate band” has the same meaning as in section 4.]
Textual Amendments
F1Ss. 4BA, 4BB inserted (with effect in accordance with s. 83(17) of the amending Act) by Finance Act 2016 (c. 24), s. 83(14) (with s. 83(18)(19))