Taxation of Chargeable Gains Act 1992

6 Other special cases. U.K.

F1 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) Where for any year of assessment—

(a) by virtue of section [F2 539 of ITTOIA 2005 (gains from contracts for life insurance etc)] a deduction of an amount is made from a person’s total income for the purposes of [F3 extra] liability, or

F4 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) by virtue of section [F5 669(1) and (2) of ITTOIA 2005 (reduction in residuary income: inheritance tax on accrued income)] the residuary income of an estate is treated as reduced so as to reduce a person’s income by any amount for those purposes,

section 4(4) shall have effect as if his income for the year were reduced by that amount.

(3) Where by virtue of section [F6 465 of ITTOIA 2005 (gains from contracts for life insurance etc)] a person’s total income for a year of assessment is deemed to include any amount or amounts—

(a) section 4(4) shall have effect as if his total income included not the whole of the amount or amounts concerned but only the [F7 annual equivalent within the meaning of section 536(1) of that Act or (as the case may be) the total annual equivalent within the meaning of section 537] of that Act, and

(b) if relief is given under section [F8 535] of that Act and the calculation [F9 under section 536(1) of that Act or (as the case may be) section 537 of that Act] does not involve the higher rate of income tax, section 4(2) and (3) shall have effect as if no income tax were chargeable at the higher rate [F10 or the [F11 dividend] upper rate] in respect of his income.

(4) Nothing in subsection (1) above shall be taken to reduce, and nothing in subsections (2) and (3) above shall be taken to increase, the amount of the deduction which a person is entitled to make from his total income by virtue of any provision of Chapter I of Part VII of the Taxes Act which limits any allowance by reference to the level of his total income.

Textual Amendments

F1 S. 6(1) repealed (with effect in accordance with s. 74(2) of the amending Act) by Finance Act 1995 (c. 4), Sch. 29 Pt. VIII(8)

F2 Words in s. 6(2)(a) substituted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 428(2)(a)(i) (with Sch. 2)

F3 Word in s. 6(2)(a) substituted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 428(2)(a)(ii) (with Sch. 2)

F4 S. 6(2)(b) repealed (with effect in accordance with s. 74(2) of the amending Act) by Finance Act 1995 (c. 4), Sch. 29 Pt. VIII(8)

F5 Words in s. 6(2)(c) substituted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 428(2)(b) (with Sch. 2)

F6 Words in s. 6(3) substituted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 428(3)(a) (with Sch. 2)

F7 Words in s. 6(3)(a) substituted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 428(3)(b) (with Sch. 2)

F8 Word in s. 6(3)(b) substituted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 428(3)(c)(i) (with Sch. 2)

F9 Words in s. 6(3)(b) substituted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 428(3)(c)(ii) (with Sch. 2)

F10 Words in s. 6(3)(b) inserted (with effect in accordance with Sch. 4 para. 25(2) of the amending Act) by Finance (No. 2) Act 1997 (c. 58), Sch. 4 para. 25(1)

F11 Word in s. 6(3)(b) substituted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), s. 883(1), Sch. 1 para. 428(3)(c)(iii) (with Sch. 2)