[F1 Transfer of business on retirementU.K.
Textual Amendments
F1Sch. 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).
22(1)Where a disposal within subsection (1) of [ section 124 of the Capital Gains Tax Act 1979 F2 ( transfer of business on retirement) involves a disposal by the individual in question of one or more interests in land to which the principal section applies, the development gains, if any, accruing to him in respect of the disposal shall be computed without reference to that section.U.K.
(2)Where any development gains accrue to an individual in respect of a disposal within subsection (1) of the said [ section 124 F2], being gains which so accrue—
(a)where subsection (1)(a) of that section applies, on the disposal of chargeable business assets comprised in the disposal by way of sale or gift; or
(b)where subsection (1)(b) of that section applies, on the disposal of the shares or securities,
sub-paragraphs (3) to (5) below shall apply in relation to the disposal within the said subsection (1) made by that individual, instead of the provisions of that section.
(3)There shall be ascertained how much of the amount available for relief under [ the said section 124 F2] would, under [ subsection (4) or (5) F2] of that section, have fallen to be applied in giving relief to the individual as respects the disposal if this Chapter had not applied in relation to the disposal.
(4)An amount up to, but not exceeding, the amount ascertained under the preceding sub-paragraph shall be applied so as to give relief to the individual as respects the disposal by reducing or extinguishing one or both of the following amounts, that is to say—
(a)the aggregate of the development gains accruing to the individual in respect of the disposal, being gains which so accrue as mentioned in sub-paragraph (2)(a) or (b) above; and
(b)the aggregate of the chargeable gains accruing to him on the disposal, being gains which so accrue as mentioned in the said sub-paragraph (2)(a) or (b),
and as between those amounts shall be so applied in whatever way is to the individual’s best advantage.
(5)[ Subsection (7) of the said section 124 F3] shall apply for the purpose of arriving at the aggregate mentioned in sub-paragraph (4)(b) above as it applies ( in cases where that section applies) for the purpose of arriving at the aggregate under [ subsection (4) or (5) F3] of that section.
(6)Any relief given under sub-paragraph (4) above as respects the disposal shall, for the purposes of the said [ section 124 F3] as regards any other disposal within subsection (1) of that section, be taken into account in determining under subsection (4) of that section how far the amount available for relief under [ that sectionF3] has been applied.
(7)In this paragraph “chargeable business asset” has the same meaning as in the said [ section 124 F3].]
Textual Amendments
F2Capital Gains Tax Act 1979 (c. 14, SIF 63:1), s. 157(2)and Sch. 7 para. 9for 1979-80et seq.]
F3Capital Gains Tax Act 1979 (c. 14, SIF 63:1), s. 157(2)and Sch. 7 para. 9for 1979-80et seq.