Taxation of Chargeable Gains Act 1992

[F1 87J Relevant parts of payment from which onward gift derived U.K.

(1) Where this section applies (see section 87I), for the purposes of section 87K treat the original payment as divided into slices as follows—

(a) a slice consisting of the taxed part (if any) of each matched amount (if any),

(b) a slice (“U”) consisting of the untaxed part (if any) of each matched amount (if any), and

(c) a slice (“R”) consisting of the rest (if any) of the original payment.

(2) For the purposes of this section, if all or part of the original payment is, in a tax year (“the matching year”) not later than the gift year, matched under section 87A with [F2 the section 1(3) amount] for the matching year or any earlier tax year, so much of the original payment as is so matched is a “matched amount”.

(3) For the purposes of subsection (1), if—

(a) as a result of there being a matched amount, gains are treated by section 87 as accruing to the otherwise-liable person,

(b) the otherwise-liable person is resident in the United Kingdom for the matching year, and

(c) none of sections 809B, 809D and 809E of ITA 2007 applies to the otherwise-liable person for the matching year,

the whole of the matched amount is its “taxed part” (and it has no “untaxed part”).

(4) For the purposes of subsection (1), if—

(a) as a result of there being a matched amount, gains are treated by section 87 as accruing to the otherwise-liable person,

(b) section 809B, 809D or 809E of ITA 2007 (remittance basis) applies to the otherwise-liable person for the matching year, and

(c) the whole or part of those gains is remitted to the United Kingdom in a tax year—

(i) that is not later than the gift year, and

(ii) in which the otherwise-liable person is resident in the United Kingdom,

so much of the matched amount as is equal to so much of the gains as is remitted as mentioned in paragraph (c) is the matched amount's “taxed part”, and the rest of the matched amount is its “untaxed part”.

(5) For the purposes of subsection (1), if all or part of the original payment is in a tax year (“the pool-matching year”) not later than the gift year matched, under section 87A as applied by paragraph 8 of Schedule 4C, with [F3 the section 1(3) amount] in the Schedule 4C pool for the pool-matching year or any earlier tax year—

(a) so much of the original payment as is so matched is a “matched amount”, and

(b) the whole of the matched amount is its “taxed part” (and it has no “untaxed part”).]

Textual Amendments

F1 Ss. 87D-87P inserted (with effect in accordance with Sch. 10 para. 1(12)-(15) of the amending Act) by Finance Act 2018 (c. 3), Sch. 10 para. 1(1)

F2 Words in s. 87J(2) substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 38

F3 Words in s. 87J(5) substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 38