Finance Act 1974 (c. 30)

SCHEDULES

[F1 SCHEDULE 3 U.K. PROVISIONS SUPPLEMENTARY TO SECTION 38

Textual Amendments

F1 Sch. 3Repealed by Finance Act 1985 (c. 54, SIF 63:1), s. 98(6)and Sch.27 Part Xin relation to disposals of interests in land taking place on or after 19March Finance Act 1985 (c. 54, SIF 63:1),but without affecting the construction of 1979 (C) Sch.5 para. 9(5).

PART I U.K. DEFINITIONS OF CURRENT USE VALUE, MATERIAL DEVELOPMENT, ETC.

Current use value—leases and reversions U.K.

5 (1) In computing under this Chapter any gain accruing to a person on a disposal of a lease which is a wasting asset, the current use value of the lease at the time of its acquisition by the person making the disposal shall be the relevant fraction of what its current use value at that time would be apart from this paragraph. U.K.

(2) For the purposes of the preceding sub-paragraph “the relevant fraction”means the fraction of which the numerator is equal to so much of the expenditure attributable to the lease under [ section 32(1)(a) and (b) of the Capital Gains Tax Act 1979 F2 ] as is not under paragraph 1 of [ Schedule 3 F2 ] to that Act excluded therefrom for the purposes of the computation under [ Chapter II of Part II of that ActF3 ] of the gain accruing on the disposal, and the denominator is equal to the whole of the expenditure which would be so attributable to the lease for those purposes apart from the said paragraph 1.]

Textual Amendments

F2 Capital Gains Tax Act 1979 (c. 14, SIF 63:1), s. 157(2)and Sch. 7 para. 9for 1979-80et seq.

F3 Capital Gains Tax Act 1979 (c. 14, SIF 63:1), s. 157(2)and Sch. 7 para. 9for 1979-80et seq.