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 [F2539 of ITTOIA 2005 (gains from contracts for life insurance etc)] [F3a person is entitled to relief by reference to the amount of a deficiency], or

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

(c)by virtue of section [F5669(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 [F6the purposes of extra liability],

section 4(4) shall have effect as if [F7the person's Step 3 income] for the year were reduced by [F8the amount of the deficiency or (as the case may be) the amount mentioned in paragraph (c)].

(3)Where by virtue of section [F9465 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 [F10the person's Step 3 income] included not the whole of the amount or amounts concerned but only the [F11annual 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 [F12535] of that Act and the calculation [F13under 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 [F14or the [F15dividend] upper rate] in respect of his income.

F16(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1S. 6(1) repealed (with effect in accordance with s. 74(2) of the amending Act) by Finance Act 1995 (c. 4), Sch. 29 Pt.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)

F2Words 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)

F3Words in s. 6(2)(a) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 296(2)(a) (with Sch. 2)

F4S. 6(2)(b) repealed (with effect in accordance with s. 74(2) of the amending Act) by Finance Act 1995 (c. 4), Sch. 29 Pt.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)

F5Words 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)

F6Words in s. 6(2)(c) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 296(2)(b) (with Sch. 2)

F7Words in s. 6(2) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 296(2)(c) (with Sch. 2)

F8Words in s. 6(2) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 296(2)(d) (with Sch. 2)

F9Words 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)

F10Words in s. 6(3)(a) substituted (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 296(3) (with Sch. 2)

F11Words 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)

F12Word 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)

F13Words 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)

F14Words 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)

F15Word 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)