1975 c. 7.

1975 c. 7.

1948 c. 38.

1975 c. 7.

http://www.legislation.gov.uk/ukpga/1976/40/schedule/10/enactedFinance Act 1976Excise dutiesCorporation taxIncome taxTaxStamp dutiesKing's Printer of Acts of Parliament2019-09-04SCHEDULESSCHEDULE 10

Section 73.

Relief for Business PropertyPreliminary1

In this Schedule "transfer of value" includes a distribution payment made and a capital distribution treated as made, and references to the amount transferred by a transfer of value and to a transferor shall be construed as including respectively the amount of such a payment or distribution and the trustees of the settlement concerned.

Nature of relief21

Where the whole or part of the value transferred by a transfer of value is attributable to the value of any relevant business property and the transfer is made after 6th April 1976, the whole or that part of the value transferred shall be treated as reduced by 30 per cent., but subject to the following provisions of this Schedule.

2

For the purposes of this paragraph, the value transferred by a transfer of value shall be calculated as a value on which no tax is chargeable.

Relevant business property31

Subject to the following provisions of this paragraph and to paragraphs 4, 5 and 8(3) below, in this Schedule " relevant business property " means, in relation to any transfer of value,—

a

property consisting of a business or interest in a business ;

b

shares in or securities of a company which (either by themselves or together with other such shares or securities owned by the transferor) gave the transferor control of the company immediately before the transfer; and

c

any land or building, machinery or plant which, immediately before the transfer, was used wholly or mainly for the purposes of a business carried on by a company of which the transferor then had control or by a partnership of which he then was a partner ;

and " business" includes a business carried on in the exercise of a profession or vocation, but does not include a business carried on otherwise than for gain.

2

Subject to sub-paragraph (3) below, a business or interest in a business, or shares in or securities of a company are not relevant business property, if the business or, as the case may be, the business carried on by the company, consists wholly or mainly of one or more of the following, that is to say, dealing in securities, stocks or shares, land or buildings or making or holding investments.

3

Sub-paragraph (2) above—

a

does not apply to any property if the business concerned is that of a jobber (as defined in section 477 of the Taxes Act) or discount house and is carried on in the United Kingdom, and

b

does not apply to shares in or securities of a company if the business of the company consists wholly or mainly in being a holding company of one or more companies whose business does not fall within that sub-paragraph.

4

Where any property would be relevant business property in relation to a transfer of value but a binding contract for its sale has been entered into at the time of the transfer, it is not relevant business property in relation to the transfer unless—

a

the property is a business or interest in a business and the sale is to a company which is to carry on the business and is made in consideration wholly or mainly of shares in or securities of that company ; or

b

the property is shares in or securities of a company and the sale is made for the purpose of reconstruction or amalgamation.

5

Shares in or securities of a company are not relevant business property in relation to a transfer of value if at the time of the transfer a winding-up order has been made in respect of the company or the company has passed a resolution for voluntary winding-up or is otherwise in process of liquidation, unless the business of the company is to continue to be carried on after a reconstruction or amalgamation and the reconstruction or amalgamation either is the purpose of the winding-up or liquidation or takes place not later than one year after the transfer of value.

6

Land, a building, machinery or plant owned by the transferor and used wholly or mainly for the purposes of a business carried on as mentioned in sub-paragraph (1)(c) above is not relevant business property in relation to a transfer of value, unless the transferor's interest in the business is or, as the case may be, shares or securities of the company carrying on the business immediately before the transfer are, relevant business property in relation to the transfer.

Minimum period of ownership41

Property is not relevant business property in relation to a transfer of value unless—

a

it was owned by the transferor throughout the two years immediately preceding the transfer ; or

b

it replaced other property and it, the other property and any property directly or indirectly replaced by the other property were owned by the transferor for periods which together comprised at least two years falling within the five years immediately preceding the transfer of value ;

and, in the case of paragraph (b) above, any other property concerned was such that, had the transfer of value been made immediately before the property was replaced, that property would (apart from this paragraph) have been relevant business property in relation to the transfer.

2

Subject to sub-paragraph (3) below, in a case falling within sub-paragraph (1)(b) above relief under this Schedule shall not exceed what it would have been had the replacement or any one or more of the replacements not been made.

3

For the purposes of sub-paragraph (2) above changes resulting from the formation, alteration or dissolution of a partnership or from the acquisition of a business by a company controlled by the former owner of the business shall be disregarded.

4

For the purposes of this paragraph, where the transferor became entitled to any property on the death of another person—

a

he shall be deemed to have owned it from the date of the death ; and

b

if that other person was his spouse he shall also be deemed to have owned it for any period during which the spouse owned it.

51

Where—

a

the whole or part of the value transferred by a transfer of value (in this paragraph referred to as the earlier transfer) was eligible for relief under this Schedule (or would have been so eligible if such relief had been capable of being given in respect of transfers of value made at that time) ; and

b

the whole or part of the property which, in relation to the earlier transfer, was relevant business property became, through the earlier transfer, the property of the person or of the spouse of the person who is the transferor in relation to a subsequent transfer of value; and

c

that property or part, or any property directly or indirectly replacing it would (apart from paragraph 4 above) have been relevant business property in relation to the subsequent transfer of value ; and

d

either the earlier transfer was, or the subsequent transfer of value is, a transfer made on the death of the transferor ;

the property which would have been relevant business property but for paragraph 4 above shall be relevant business property notwithstanding that paragraph.

2

Where the property which, by virtue of sub-paragraph (1) above, is relevant business property replaced the property or part referred to in paragraph (c) of that sub-paragraph, relief under this Schedule shall not exceed what it would have been had the replacement or any one or more of the replacements not been made, but paragraph 4(3) above shall apply with the necessary modifications for the purposes of this sub-paragraph.

3

Where, under the earlier transfer, the amount of the value transferred which was attributable to the property or part referred to in sub-paragraph (1)(c) above was part only of its value, a like part only of the value which (apart from this sub-paragraph) would fall to be reduced under this Schedule by virtue of this paragraph shall be so reduced.

Value of business6

For the purposes of this Schedule the value of a business or of an interest in a business shall be taken to be the value which would be its net value if determined under paragraph 14(2) of Schedule 4 to the Finance Act 1975.

Value of shares in or securities of certain companies7

Where a company is a member of a group and the business of any other company which is a member of the group falls within paragraph 3(2) above, then, unless either—

a

that business also falls within paragraph 3(3) above, or

b

that business consists wholly or mainly in the holding of land or buildings wholly or mainly occupied by members of the group whose business either does not fall within paragraph 3(2) above or falls within both that paragraph and paragraph 3(3) above,

the value of shares in or securities of the company shall be taken for the purposes of this Schedule to be what it would be if that other company were not a member of the group.

Exclusion of value of excepted assets81

In determining for the purposes of this Schedule what part of the value transferred by a transfer of value is attributable to the value of any relevant business property so much of the last-mentioned value as is attributable to any excepted assets within the meaning of sub-paragraph (2) below shall be left out of account.

2

An asset is an excepted asset in relation to any relevant business property if it was not either used wholly or mainly for the purposes of the business concerned throughout the whole or the last two years of the relevant period defined in sub-paragraph (5) below, or required at the time of the transfer for future use for those purposes ; but where the business concerned is carried on by a company which is a member of a group, the use of an asset for the purposes of a business carried on by another company which at the time of the use and immediately before the transfer was also a member of that group shall be treated as use for the purposes of the business concerned, unless that other company's membership of the group falls to be disregarded under paragraph 7 above.

3

Sub-paragraph (2) above does not apply in relation to an asset which is relevant business property by virtue only of paragraph 3(1)(c) above, but an asset is not relevant business property by virtue only of that paragraph unless either—

a

it was used as mentioned in that paragraph throughout the two years immediately preceding the transfer of value ; or

b

it replaced another asset so used and it and the other asset and any asset directly or indirectly replaced by that other asset were so used for periods which together comprised at least two years falling within the five years immediately preceding the transfer of value ;

but in a case where paragraph 5 above applies this condition shall be treated as satisfied if the asset (or it and the asset or assets replaced by it) was or were so used throughout the period between the earlier and the subsequent transfer mentioned in that paragraph (or throughout the part of that period during which it or they were owned by the transferor or the transferor's spouse).

4

Where part but not the whole of any land or building is used exclusively for the purposes of any business and the land or building would, but for this sub-paragraph, be an excepted asset, or, as the case may be, prevented by sub-paragraph (3) above from being relevant business property, the part so used and the remainder shall for the purposes of this paragraph be treated as separate assets, and the value of the part so used shall (if it would otherwise be less) be taken to be such proportion of the value of the whole as may be just.

5

For the purposes of this paragraph the relevant period, in relation to any asset, is the period immediately preceding the transfer of value during which the asset (or, if the relevant business property is an interest in a business, a corresponding interest in the asset) was owned by the transferor or, if the business concerned is that of a company, was owned by that company or any other company which immediately before the transfer of value was a member of the same group.

6

For the purposes of this paragraph an asset shall be deemed not to have been used wholly or mainly for the purposes of the business concerned at any time when it was used wholly or mainly for the personal benefit of the transferor or of a person connected with him.

Avoidance of double relief9

So much of the value transferred by a transfer of value as is attributable to shares in or securities of a company which would not have been sufficient, without any other property, to give the transferor control of the company immediately before the transfer shall not be reduced under this Schedule, if the value of the shares or securities is taken, by virtue of paragraph 9A of Schedule 10 to the Finance Act 1975, to be less than the value previously determined.

10

Where any part of the value transferred by a transfer of value is reduced under Schedule 8 to the Finance Act 1975 by reference to the agricultural value of any property, or would be so reduced but for paragraph 1(2A) thereof, such part of the value transferred as is or would be so reduced under that Schedule shall not be reduced under this Schedule.

11

Where the value transferred by a transfer of value is reduced under paragraph 4 of Schedule 9 to the Finance Act 1975 by reference to the tax chargeable on the disposal of any trees or underwood, the value to be reduced under paragraph 2 above shall be the value as reduced under the said paragraph 4 (but subject to paragraph 2(2) above).

12

Where, under section 22(5) of the Finance Act 1975, any value is included in the value of a person's estate immediately before his death, the value so included shall not be reduced under this Schedule.

Meaning of " group ", " holding company ", " subsidiary " and " control"131

For the purposes of this Schedule a company and all its subsidiaries are members of a group, and " holding company " and " subsidiary" have the same meanings as in section 154 of the Companies Act 1948.

2

Paragraph 13(7) of Schedule 4 to the Finance Act 1975 (control of company) applies for the purposes of this Schedule.

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SCHEDULE 10
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<p>Section 73.</p>
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<p>In this Schedule "transfer of value" includes a distribution payment made and a capital distribution treated as made, and references to the amount transferred by a transfer of value and to a transferor shall be construed as including respectively the amount of such a payment or distribution and the trustees of the settlement concerned.</p>
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<num>2</num>
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<num>1</num>
<content>
<p>Where the whole or part of the value transferred by a transfer of value is attributable to the value of any relevant business property and the transfer is made after 6th April 1976, the whole or that part of the value transferred shall be treated as reduced by 30 per cent., but subject to the following provisions of this Schedule.</p>
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<subparagraph eId="schedule-10-paragraph-2-2">
<num>2</num>
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<p>For the purposes of this paragraph, the value transferred by a transfer of value shall be calculated as a value on which no tax is chargeable.</p>
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<num>3</num>
<subparagraph eId="schedule-10-paragraph-3-1">
<num>1</num>
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<p>Subject to the following provisions of this paragraph and to paragraphs 4, 5 and 8(3) below, in this Schedule " relevant business property " means, in relation to any transfer of value,—</p>
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<p>shares in or securities of a company which (either by themselves or together with other such shares or securities owned by the transferor) gave the transferor control of the company immediately before the transfer; and</p>
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<p>any land or building, machinery or plant which, immediately before the transfer, was used wholly or mainly for the purposes of a business carried on by a company of which the transferor then had control or by a partnership of which he then was a partner ;</p>
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<p>and " business" includes a business carried on in the exercise of a profession or vocation, but does not include a business carried on otherwise than for gain.</p>
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<num>2</num>
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<p>Subject to sub-paragraph (3) below, a business or interest in a business, or shares in or securities of a company are not relevant business property, if the business or, as the case may be, the business carried on by the company, consists wholly or mainly of one or more of the following, that is to say, dealing in securities, stocks or shares, land or buildings or making or holding investments.</p>
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<p>does not apply to any property if the business concerned is that of a jobber (as defined in section 477 of the Taxes Act) or discount house and is carried on in the United Kingdom, and</p>
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<p>does not apply to shares in or securities of a company if the business of the company consists wholly or mainly in being a holding company of one or more companies whose business does not fall within that sub-paragraph.</p>
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<num>4</num>
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<p>Where any property would be relevant business property in relation to a transfer of value but a binding contract for its sale has been entered into at the time of the transfer, it is not relevant business property in relation to the transfer unless—</p>
</intro>
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<p>the property is a business or interest in a business and the sale is to a company which is to carry on the business and is made in consideration wholly or mainly of shares in or securities of that company ; or</p>
</content>
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<num>b</num>
<content>
<p>the property is shares in or securities of a company and the sale is made for the purpose of reconstruction or amalgamation.</p>
</content>
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<num>5</num>
<content>
<p>Shares in or securities of a company are not relevant business property in relation to a transfer of value if at the time of the transfer a winding-up order has been made in respect of the company or the company has passed a resolution for voluntary winding-up or is otherwise in process of liquidation, unless the business of the company is to continue to be carried on after a reconstruction or amalgamation and the reconstruction or amalgamation either is the purpose of the winding-up or liquidation or takes place not later than one year after the transfer of value.</p>
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<num>6</num>
<content>
<p>Land, a building, machinery or plant owned by the transferor and used wholly or mainly for the purposes of a business carried on as mentioned in sub-paragraph (1)(c) above is not relevant business property in relation to a transfer of value, unless the transferor's interest in the business is or, as the case may be, shares or securities of the company carrying on the business immediately before the transfer are, relevant business property in relation to the transfer.</p>
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<num>4</num>
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<num>1</num>
<intro>
<p>Property is not relevant business property in relation to a transfer of value unless—</p>
</intro>
<paragraph eId="schedule-10-paragraph-4-1-a">
<num>a</num>
<content>
<p>it was owned by the transferor throughout the two years immediately preceding the transfer ; or</p>
</content>
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<num>b</num>
<content>
<p>it replaced other property and it, the other property and any property directly or indirectly replaced by the other property were owned by the transferor for periods which together comprised at least two years falling within the five years immediately preceding the transfer of value ;</p>
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</paragraph>
<wrapUp>
<p>and, in the case of paragraph (b) above, any other property concerned was such that, had the transfer of value been made immediately before the property was replaced, that property would (apart from this paragraph) have been relevant business property in relation to the transfer.</p>
</wrapUp>
</subparagraph>
<subparagraph eId="schedule-10-paragraph-4-2">
<num>2</num>
<content>
<p>Subject to sub-paragraph (3) below, in a case falling within sub-paragraph (1)(b) above relief under this Schedule shall not exceed what it would have been had the replacement or any one or more of the replacements not been made.</p>
</content>
</subparagraph>
<subparagraph eId="schedule-10-paragraph-4-3">
<num>3</num>
<content>
<p>For the purposes of sub-paragraph (2) above changes resulting from the formation, alteration or dissolution of a partnership or from the acquisition of a business by a company controlled by the former owner of the business shall be disregarded.</p>
</content>
</subparagraph>
<subparagraph eId="schedule-10-paragraph-4-4">
<num>4</num>
<intro>
<p>For the purposes of this paragraph, where the transferor became entitled to any property on the death of another person—</p>
</intro>
<paragraph eId="schedule-10-paragraph-4-4-a">
<num>a</num>
<content>
<p>he shall be deemed to have owned it from the date of the death ; and</p>
</content>
</paragraph>
<paragraph eId="schedule-10-paragraph-4-4-b">
<num>b</num>
<content>
<p>if that other person was his spouse he shall also be deemed to have owned it for any period during which the spouse owned it.</p>
</content>
</paragraph>
</subparagraph>
</paragraph>
<paragraph eId="schedule-10-paragraph-5">
<num>5</num>
<subparagraph eId="schedule-10-paragraph-5-1">
<num>1</num>
<intro>
<p>Where—</p>
</intro>
<paragraph eId="schedule-10-paragraph-5-1-a">
<num>a</num>
<content>
<p>the whole or part of the value transferred by a transfer of value (in this paragraph referred to as the earlier transfer) was eligible for relief under this Schedule (or would have been so eligible if such relief had been capable of being given in respect of transfers of value made at that time) ; and</p>
</content>
</paragraph>
<paragraph eId="schedule-10-paragraph-5-1-b">
<num>b</num>
<content>
<p>the whole or part of the property which, in relation to the earlier transfer, was relevant business property became, through the earlier transfer, the property of the person or of the spouse of the person who is the transferor in relation to a subsequent transfer of value; and</p>
</content>
</paragraph>
<paragraph eId="schedule-10-paragraph-5-1-c">
<num>c</num>
<content>
<p>that property or part, or any property directly or indirectly replacing it would (apart from paragraph 4 above) have been relevant business property in relation to the subsequent transfer of value ; and</p>
</content>
</paragraph>
<paragraph eId="schedule-10-paragraph-5-1-d">
<num>d</num>
<content>
<p>either the earlier transfer was, or the subsequent transfer of value is, a transfer made on the death of the transferor ;</p>
</content>
</paragraph>
<wrapUp>
<p>the property which would have been relevant business property but for paragraph 4 above shall be relevant business property notwithstanding that paragraph.</p>
</wrapUp>
</subparagraph>
<subparagraph eId="schedule-10-paragraph-5-2">
<num>2</num>
<content>
<p>Where the property which, by virtue of sub-paragraph (1) above, is relevant business property replaced the property or part referred to in paragraph (c) of that sub-paragraph, relief under this Schedule shall not exceed what it would have been had the replacement or any one or more of the replacements not been made, but paragraph 4(3) above shall apply with the necessary modifications for the purposes of this sub-paragraph.</p>
</content>
</subparagraph>
<subparagraph eId="schedule-10-paragraph-5-3">
<num>3</num>
<content>
<p>Where, under the earlier transfer, the amount of the value transferred which was attributable to the property or part referred to in sub-paragraph (1)(c) above was part only of its value, a like part only of the value which (apart from this sub-paragraph) would fall to be reduced under this Schedule by virtue of this paragraph shall be so reduced.</p>
</content>
</subparagraph>
</paragraph>
</hcontainer>
<hcontainer name="crossheading" eId="schedule-10-crossheading-value-of-business">
<heading>Value of business</heading>
<paragraph eId="schedule-10-paragraph-6">
<num>6</num>
<content>
<p>
For the purposes of this Schedule the value of a business or of an interest in a business shall be taken to be the value which would be its net value if determined under paragraph 14(2) of Schedule 4 to the
<noteRef href="#m00193" placement="inline" class="margin-note"/>
Finance Act 1975.
</p>
</content>
</paragraph>
</hcontainer>
<hcontainer name="crossheading" eId="schedule-10-crossheading-value-of-shares-in-or-securities-of-certain-companies">
<heading>Value of shares in or securities of certain companies</heading>
<paragraph eId="schedule-10-paragraph-7">
<num>7</num>
<intro>
<p>Where a company is a member of a group and the business of any other company which is a member of the group falls within paragraph 3(2) above, then, unless either—</p>
</intro>
<paragraph eId="schedule-10-paragraph-7-a">
<num>a</num>
<content>
<p>that business also falls within paragraph 3(3) above, or</p>
</content>
</paragraph>
<paragraph eId="schedule-10-paragraph-7-b">
<num>b</num>
<content>
<p>that business consists wholly or mainly in the holding of land or buildings wholly or mainly occupied by members of the group whose business either does not fall within paragraph 3(2) above or falls within both that paragraph and paragraph 3(3) above,</p>
</content>
</paragraph>
<wrapUp>
<p>the value of shares in or securities of the company shall be taken for the purposes of this Schedule to be what it would be if that other company were not a member of the group.</p>
</wrapUp>
</paragraph>
</hcontainer>
<hcontainer name="crossheading" eId="schedule-10-crossheading-exclusion-of-value-of-excepted-assets">
<heading>Exclusion of value of excepted assets</heading>
<paragraph eId="schedule-10-paragraph-8">
<num>8</num>
<subparagraph eId="schedule-10-paragraph-8-1">
<num>1</num>
<content>
<p>In determining for the purposes of this Schedule what part of the value transferred by a transfer of value is attributable to the value of any relevant business property so much of the last-mentioned value as is attributable to any excepted assets within the meaning of sub-paragraph (2) below shall be left out of account.</p>
</content>
</subparagraph>
<subparagraph eId="schedule-10-paragraph-8-2">
<num>2</num>
<content>
<p>An asset is an excepted asset in relation to any relevant business property if it was not either used wholly or mainly for the purposes of the business concerned throughout the whole or the last two years of the relevant period defined in sub-paragraph (5) below, or required at the time of the transfer for future use for those purposes ; but where the business concerned is carried on by a company which is a member of a group, the use of an asset for the purposes of a business carried on by another company which at the time of the use and immediately before the transfer was also a member of that group shall be treated as use for the purposes of the business concerned, unless that other company's membership of the group falls to be disregarded under paragraph 7 above.</p>
</content>
</subparagraph>
<subparagraph eId="schedule-10-paragraph-8-3">
<num>3</num>
<intro>
<p>Sub-paragraph (2) above does not apply in relation to an asset which is relevant business property by virtue only of paragraph 3(1)(c) above, but an asset is not relevant business property by virtue only of that paragraph unless either—</p>
</intro>
<paragraph eId="schedule-10-paragraph-8-3-a">
<num>a</num>
<content>
<p>it was used as mentioned in that paragraph throughout the two years immediately preceding the transfer of value ; or</p>
</content>
</paragraph>
<paragraph eId="schedule-10-paragraph-8-3-b">
<num>b</num>
<content>
<p>it replaced another asset so used and it and the other asset and any asset directly or indirectly replaced by that other asset were so used for periods which together comprised at least two years falling within the five years immediately preceding the transfer of value ;</p>
</content>
</paragraph>
<wrapUp>
<p>but in a case where paragraph 5 above applies this condition shall be treated as satisfied if the asset (or it and the asset or assets replaced by it) was or were so used throughout the period between the earlier and the subsequent transfer mentioned in that paragraph (or throughout the part of that period during which it or they were owned by the transferor or the transferor's spouse).</p>
</wrapUp>
</subparagraph>
<subparagraph eId="schedule-10-paragraph-8-4">
<num>4</num>
<content>
<p>Where part but not the whole of any land or building is used exclusively for the purposes of any business and the land or building would, but for this sub-paragraph, be an excepted asset, or, as the case may be, prevented by sub-paragraph (3) above from being relevant business property, the part so used and the remainder shall for the purposes of this paragraph be treated as separate assets, and the value of the part so used shall (if it would otherwise be less) be taken to be such proportion of the value of the whole as may be just.</p>
</content>
</subparagraph>
<subparagraph eId="schedule-10-paragraph-8-5">
<num>5</num>
<content>
<p>For the purposes of this paragraph the relevant period, in relation to any asset, is the period immediately preceding the transfer of value during which the asset (or, if the relevant business property is an interest in a business, a corresponding interest in the asset) was owned by the transferor or, if the business concerned is that of a company, was owned by that company or any other company which immediately before the transfer of value was a member of the same group.</p>
</content>
</subparagraph>
<subparagraph eId="schedule-10-paragraph-8-6">
<num>6</num>
<content>
<p>For the purposes of this paragraph an asset shall be deemed not to have been used wholly or mainly for the purposes of the business concerned at any time when it was used wholly or mainly for the personal benefit of the transferor or of a person connected with him.</p>
</content>
</subparagraph>
</paragraph>
</hcontainer>
<hcontainer name="crossheading" eId="schedule-10-crossheading-avoidance-of-double-relief">
<heading>Avoidance of double relief</heading>
<paragraph eId="schedule-10-paragraph-9">
<num>9</num>
<content>
<p>
So much of the value transferred by a transfer of value as is attributable to shares in or securities of a company which would not have been sufficient, without any other property, to give the transferor control of the company immediately before the transfer shall not be reduced under this Schedule, if the value of the shares or securities is taken, by virtue of paragraph 9A of Schedule 10 to the
<noteRef href="#m00194" placement="inline" class="margin-note"/>
Finance Act 1975, to be less than the value previously determined.
</p>
</content>
</paragraph>
<paragraph eId="schedule-10-paragraph-10">
<num>10</num>
<content>
<p>Where any part of the value transferred by a transfer of value is reduced under Schedule 8 to the Finance Act 1975 by reference to the agricultural value of any property, or would be so reduced but for paragraph 1(2A) thereof, such part of the value transferred as is or would be so reduced under that Schedule shall not be reduced under this Schedule.</p>
</content>
</paragraph>
<paragraph eId="schedule-10-paragraph-11">
<num>11</num>
<content>
<p>Where the value transferred by a transfer of value is reduced under paragraph 4 of Schedule 9 to the Finance Act 1975 by reference to the tax chargeable on the disposal of any trees or underwood, the value to be reduced under paragraph 2 above shall be the value as reduced under the said paragraph 4 (but subject to paragraph 2(2) above).</p>
</content>
</paragraph>
<paragraph eId="schedule-10-paragraph-12">
<num>12</num>
<content>
<p>Where, under section 22(5) of the Finance Act 1975, any value is included in the value of a person's estate immediately before his death, the value so included shall not be reduced under this Schedule.</p>
</content>
</paragraph>
</hcontainer>
<hcontainer name="crossheading" eId="schedule-10-crossheading-meaning-of-group-holding-company-subsidiary-and-control">
<heading>Meaning of " group ", " holding company ", " subsidiary " and " control"</heading>
<paragraph eId="schedule-10-paragraph-13">
<num>13</num>
<subparagraph eId="schedule-10-paragraph-13-1">
<num>1</num>
<content>
<p>
For the purposes of this Schedule a company and all its subsidiaries are members of a group, and " holding company " and " subsidiary" have the same meanings as in section 154 of the
<noteRef href="#m00195" placement="inline" class="margin-note"/>
Companies Act 1948.
</p>
</content>
</subparagraph>
<subparagraph eId="schedule-10-paragraph-13-2">
<num>2</num>
<content>
<p>
Paragraph 13(7) of Schedule 4 to the
<noteRef href="#m00196" placement="inline" class="margin-note"/>
Finance Act 1975 (control of company) applies for the purposes of this Schedule.
</p>
</content>
</subparagraph>
</paragraph>
</hcontainer>
</hcontainer>
</hcontainer>
</portionBody>
</portion>
</akomaNtoso>