Capital Gains Tax Act 1979
Part I General
Capital gains tax and corporation tax
1 Taxation of capital gains.
Capital gains tax
2 Persons chargeable.
3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 Gains chargeable to tax.
5 Exemption for first £3,000 of gains
6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7 Time for payment of tax.
7A Payment by instalments of tax on gifts.
8, 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The foreign element
10 Double taxation relief.
11 Allowance for foreign tax.
12 Non-resident with United Kingdom branch or agency.
13 Foreign assets: delayed remittances.
14 Foreign assets of person with foreign domicile.
15 Non-resident company.
16 Non-resident group of companies.
17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18 Residence etc. and location of assets.
Part II Gains and Losses
Chapter I Disposals
19 Disposal of assets.
20 Capital sums derived from assets.
21 Capital sums: compensation and insurance money.
22 Assets lost or destroyed, or whose value becomes negligible.
23 Mortgages and charges.
24 Hire-purchase.
25 Value shifting.
26 Value shifting: further provisions.
26A Value shifting: distributions within a group followed by a disposal of shares.
26B(1) The references in section 26 above to a reduction...
26C(1) For the purposes of sections 26(1A) and 26A(7) to...
26D(1) Where— (a) but for sections 78 and 85(3) below,...
27 Time of disposal and acquisition where asset disposed of under contract.
Chapter II Computation
28 Chargeable gains.
29 Losses.
29A(1) Subject to the provisions of this Act a person’s...
Computation of gains
30 Introductory.
31 Consideration chargeable to tax on income.
32 Expenditure: general.
32A Expenditure: amounts to be included as consideration.
33 Exclusion of expenditure by reference to tax on income.
33A(1) Where there is a transfer of securities within the...
34 Restriction of losses by reference to capital allowances and renewals allowances.
35 Part disposals.
36 Assets derived from other assets.
37 Wasting assets.
38 Wasting assets: straightline restriction of allowable expenditure.
39 Wasting assets qualifying for capital allowances.
40 Consideration due after time of disposal.
41 Contingent liabilities.
42 Expenditure reimbursed out of public money.
43 Supplemental.
Part III Persons and Trusts
Married persons
44 Husband and wife.
45 Tax on married woman’s gains.
Trustees, nominees and personal representatives
46 Nominees and bare trustees.
47 Expenses in administration of estates and trusts.
48 Liability for tax.
Death
49 Death: general provisions.
50 Death: application of law in Scotland.
Settlements
51 Meaning of “settled property”.
52 Trustees of settlements.
53 Gifts in settlement.
54 Person becoming absolutely entitled to settled property.
55 Termination of life interest etc.
56 Death of life tenant: exclusion of chargeable gain.
56A Effect on sections 55 and 56 of relief under Finance Act 1980, section 79.
57 Death of annuitant.
58 Disposal of interests in settled property.
Other cases
59 Gifts: recovery from donee.
60 Partnerships.
61 Insolvents’ assets.
62 Transactions between connected persons.
63 Connected persons: interpretation.
Part IV Shares and Securities
Chapter I General
64 Interpretation.
Rules of identification
65 Pooling.
66 Disposal on or before day of acquisition.
Gilt-edged securities
67 Exemptions for gilt-edged securities and qualifying corporate bonds etc.
68 Identification (general).
69 Identification: disposal to husband or wife and third person.
70 Re-acquisition after sale at a loss.
Savings certificates, etc.
71 Exemption for government non-marketable securities.
Capital distribution in respect of shares, etc.
72 Distribution which is not a new holding within Chapter II.
73 Disposal of right to acquire shares.
Close companies
74 Disposal of shares: relief in respect of income tax consequent on shortfall in distributions.
75 Shares in close company transferring assets at an undervalue.
Share option schemes
76 Consideration for acquisition of shares under share option schemes.
Chapter II Reorganisation of Share Capital, Conversion of Securities, Etc.
Reorganisation or reduction of share capital
77 Application of sections 78 to 81.
78 Equation of original shares and new holding.
79 Consideration given or received by holder.
80 Part disposal of new holding.
81 Composite new holdings.
Conversion of securities
82 Equation of converted securities and new holding.
83 Premiums on conversion of securities.
84 Compensation stock.
Company reconstructions and amalgamations
85 Exchange of securities for those in another company.
86 Reconstruction or amalgamation involving issue of securities.
87 Restriction on application of sections 85 and 86.
88 Procedure for clearance in advance.
Stock dividends
89 Stock dividends: consideration for new holding.
90 Capital gains on certain stock dividends.
Quoted options
91 Application of Chapter II to quoted options.
Chapter III Unit Trusts etc.
Preliminary
92 Interpretation.
93 Application of Act to unit trusts.
General
94 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Unit trusts
95 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
96 Unit trusts for exempt unit holders.
97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
98 Transfer of company’s assets to unit trust which later comes within section 96 or 97.
Court investment funds etc.
99 Funds in court.
100 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part V Land
Private residences
101 Relief on disposal of private residence.
102 Amount of relief.
103 Amount of relief: further provisions.
104 Private residence occupied under terms of settlement.
105 Private residence occupied by dependent relative.
Leases
106 Leases of land and other assets.
Part disposals
107 Small part disposals.
108 Part disposal to authority with compulsory powers.
109 Part disposal: consideration exceeding allowable expenditure.
Compulsory acquisition
110 Compensation paid on compulsory acquisition.
111 Time of disposal and acquisition.
111A Roll-over relief on compulsory acquisition.
111B(1) Land is excluded from paragraph (c) of subsection (1)...
Agricultural land and woodlands
112 Grants for giving up agricultural land.
113 Woodlands.
Development land tax etc.
114 Interaction with development land tax and other taxation.
Part VI Property: Further Provisions
Replacement of business assets
115 Roll-over relief.
116 Assets only partly replaced.
117 New assets which are depreciating assets.
118 Relevant classes of assets.
119 Assets of Class 1.
120 Trade carried on by family company: business assets dealt with by individual.
121 Activities other than trades, and interpretation.
Stock in trade
122 Appropriations to and from stock.
Transfer of business to a company
123 Roll-over relief on transfer of business.
123A(1) For the purposes of this Act any asset transferred...
Transfer of business on retirement
124 Relief on transfer.
125 Transfer by way of capital distribution from family company.
Gifts of business assets
126 Relief for gifts of business assets.
126A Section 126 relief: gifts to non-residents.
126B Section 126 relief: gifts to foreign-controlled companies.
126C Section 126 relief: emigration of controlling trustees.
Movable property
127 Wasting assets.
128 Chattel exemption.
129 Leases of property other than land.
130 Passenger vehicles.
131 Decorations for valour or gallant conduct.
Other property
132 Commodities and other assets without earmark.
132A(1) Subject to subsections (2) and (3) below, in computing...
133 Foreign currency for personal expenditure.
134 Debts.
135 Debts: foreign currency bank accounts.
136 Relief in respect of loans to traders.
136A Relief for qualifying corporate bonds.
136B Section 136A: supplementary.
137 Options and forfeited deposits.
138 Options: application of rules as to wasting assets.
139 Quoted options treated as part of new holdings.
Part VII Other Provisions
Insurance
140 Policies of insurance.
141 Disallowance of insurance premiums as expenses.
142 Underwriters.
142A Disposal of assets in premiums trust fund etc.
143 Life assurance and deferred annuities.
Superannuation funds, annuities and annual payments
144 Superannuation funds, annuities and annual payments.
Profit sharing and share option schemes
144A Approved profit sharing and share option schemes.
Other exemptions and reliefs
145 Charities.
146 Gifts to charities etc.
146A(1) Subsection (2) below shall apply where—
147 Works of art etc.
147A Gifts on which inheritance tax is chargeable etc.
147B Section 147A relief: gifts to non-residents.
148 Maintenance funds for historic buildings.
149 Employee trusts.
149A Building societies and life policies.
149B Miscellaneous exemptions.
149C Business expansion schemes.
149D Personal equity plans.
Part VIII Supplemental
Valuation
150 Valuation: general.
151 Assets disposed of in a series of transactions.
152 Unquoted shares and securities.
153 Value determined for capital transfer tax.
Other provisions
154 Income tax decisions.
155 Interpretation.
Part IX General
156 Commencement.
157 Savings, transitory provisions and consequential amendments.
158 Repeals.
159 Continuity and construction of references to old and new law.
160 Short title.
SCHEDULES
SCHEDULE 1Application of Exempt Amount in Particular Cases
Preliminary
1In this Schedule references to any subsections not otherwise identified...
Husband and wife
2(1) For any year of assessment during which a married...
3(1) For any year of assessment during which or during...
Personal representatives
4For the year of assessment in which an individual dies...
Trustees
5(1) For any year of assessment during the whole or...
6(1) For any year of assessment during the whole or...
SCHEDULE 2 Gilt-Edged Securities
Part I
1For the purposes of this Act “gilt-edged securities” means the...
2The Treasury shall cause particulars of any order made under...
3Section 14(b) of the Interpretation Act 1978 (implied power to...
Part II Existing Gilt-Edged Securities
Stocks and bonds charged on the National Loans Fund
Securities issued by certain public corporations and guaranteed by the Treasury
SCHEDULE 3 Leases
Leases of land as wasting assets: curved line restriction of allowable expenditure
1(1) A lease of land shall not be a wasting...
Premiums for leases
2(1) Subject to this Schedule where the payment of a...
3(1) This paragraph applies in relation to a lease of...
Sub-leases out of short leases
4(1) In the computation under Chapter II or Part II...
Exclusion of premiums taxed under Schedule A etc.
5(1) Where by reference to any premium income tax has...
6(1) If under section 37(4) of the Taxes Act 1988...
7If under section 34(2) and (3) of the Taxes Act...
Duration of leases
8(1) In ascertaining for the purposes of this Act the...
Leases of property other than land
9(1) Paragraphs 2, 3, 4 and 8 of this Schedule...
Interpretation
10(1) In this Act, unless the context otherwise requires “lease”—...
SCHEDULE 4 Relief for Gifts of Business Assets
Part I Agricultural Property and Settled Property
Agricultural property
1(1) This paragraph applies where— (a) there is a disposal...
Settled property
2(1) If— (a) the trustees of a settlement make a...
3(1) This paragraph applies where— (a) there is, by virtue...
Part II Reductions in Held-Over Gain
Application and interpretation
4(1) The provisions of this Part of this Schedule apply...
Reductions peculiar to disposals of assets
5(1) If, in the case of a disposal of an...
6(1) If, in the case of a disposal of an...
Reduction peculiar to disposal of shares
7(1) If in the case of a disposal of shares...
Reduction where gain partly relieved by retirement relief
8(1) If, in the case of a disposal of an...
SCHEDULE 5 Assets Held on 6th April 1965
Part I Quoted Securities
Deemed acquisition at 6th April 1965 value
1(1) This paragraph applies— (a) to shares and securities which...
Restriction of gain or loss by reference to actual cost
2(1) Subject to the rights of election conferred by paragraphs...
Exclusion of pooling
3(1) Subject to the rights of election conferred by paragraphs...
Election for pooling
4(1) If a person so elects, quoted securities covered by...
Election by principal company of group
5(1) In the case of companies which at the relevant...
Pooling at value on 6th April 1965: exchange of securities etc.
6(1) Where a person who has made only one of...
Underwriters
7No election under paragraph 4 above shall cover quoted securities...
Interpretation of paragraphs 3 to 7
8(1) In paragraphs 3 to 7 above— “quoted securities” means...
Part II Land Reflecting Development Value
Valuation at 6th April 1965
9(1) This paragraph shall apply in relation to a disposal...
Allowance for betterment levy
10Paragraph 9(1) above has effect subject to paragraph 21(2) of...
Part III Other Assets
Apportionment by reference to straightline growth of gain or loss over period of ownership
11(1) This paragraph applies subject to Parts I and II...
Election for valuation at 6th April 1965
12(1) If the person making a disposal so elects paragraph...
Unquoted shares, commodities, etc.
13(1) This paragraph has effect as respects shares held by...
Reorganisation of share capital, conversion of securities, etc.
14(1) For the purposes of this Act, including Chapter II...
Part IV Miscellaneous
Capital allowances
15If under any provision in this Schedule it is to...
Assets transferred to close companies
16(1) This paragraph has effect where— (a) at any time,...
Husbands and wives
17Where section 44 of this Act is applied in relation...
Compensation and insurance money
18Where section 21(4)(a) of this Act applies to exclude a...
SCHEDULE 6 Transitory
Part I Valuation
Preliminary
1This Part of this Schedule has effect in cases where...
Original rules
2(1) “Market value” in relation to any assets means the...
Value of quoted securities on 6th April 1965
3(1) For the purpose of ascertaining the market value of...
References to Stock Exchange on or after 25th March 1973
4Except in relation to anything done before 25th March 1973,...
Unquoted shares and securities: application of section 152 to acquisitions before commencement of this Act
5Paragraphs 6 to 8 below shall have effect with respect...
6Subject to paragraphs 7 and 8 below, if the market...
Unquoted shares or securities: acquisition on death
7(1) This paragraph applies if, in a case where the...
Unquoted shares or securities: prior part disposal
8(1) In any case where— (a) before 6th July 1973...
Value determined for estate duty
9(1) Where estate duty (including estate duty leviable under the...
Part II Assets Acquired Before Commencement
Events before commencement
10(1) The substitution of this Act for the corresponding enactments...
Part III Other Transitory Provisions
Value-shifting
11Section 26 of this Act applies only where the reduction...
Assets acquired on disposal chargeable under Case VII of Schedule D
12(1) In this paragraph references to a disposal chargeable under...
Unrelieved Case VII losses
13Where no relief from income tax (for a year earlier...
Dispositions before 27th March 1974 which attract capital transfer tax
14Paragraphs 15 and 16 below have effect in respect of...
Gifts subject to capital transfer tax on death
15(1) Where the value of any asset comprised in a...
Life interest terminated on death on which capital transfer tax is chargeable
16Where a life interest within the meaning of section 55...
Devaluation of sterling: securities acquired with borrowed foreign currency
17(1) This paragraph applies where, in pursuance of permission granted...
Devaluation of sterling: foreign insurance funds
18(1) The sums allowable as a deduction under section 32(1)(a)...
Gilt-edged securities past redemption date
19So far as material for the purposes of this or...
Reorganisation of share capital, conversion of securities, etc.
20(1) Chapter II of Part IV of this Act has...
Land: allowance for betterment levy
21(1) Where betterment levy charged in the case of any...
Replacement of business assets
22(1) Sections 115 to 121 of this Act (which are...
Transfer of business to a company
23Section 123 of this Act shall have effect as if...
Works of art etc.
24The repeals made by this Act do not affect the...
Disposal before acquisition
25The substitution of this Act for the corresponding enactments repealed...
Estate duty
26Nothing in the repeals made by this Act shall affect...
Income and corporation tax: premiums on leases
27The repeal by this Act of section 116(3) of the...
Validity of subordinate legislation
28So far as this Act re-enacts any provision contained in...
Saving for Part II of this Schedule
29The provisions of this Part of this Schedule are without...
SCHEDULE 7 Consequential Amendments
Taxes Management Act 1970 (c. 9)
1(1) The Taxes Management Act 1970 shall be amended as...
Income and Corporation Taxes Act 1970 (c. 10)
2(1) The Taxes Act shall be amended as follows.
Finance Act 1974 (c. 30)
3For paragraph 18(6) of Schedule 3 to the Finance Act...
4For paragraph 19 of Schedule 3 to the Finance Act...
5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Development Land Tax Act 1976 (c. 24)
6(1) Paragraph 5 of Schedule 6 to the Development Land...
Finance Act 1976 (c. 40)
7For section 54(5) of the Finance Act 1976 substitute—
Translation of references to Part III of Finance Act 1965
8In the enactments specified in the Table below substitute “...
TABLE Part I
1In the Taxes Management Act 1970 (c. 9) section 11(1)(b)...
2In the Income and Corporation Taxes Act 1970 (c. 10)...
3In the Finance Act 1970 (c. 24) . . ....
4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5In the Finance Act 1973 (c. 51) section 38(3) section...
6In the Finance Act 1974 (c. 30) section 40(3)(a) section...
7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9In the Finance Act 1976 (c. 40) . . ....
10In the Finance Act 1977 (c. 36) section 42(1) (see...
Part II References to Part III of Finance Act 1965 Followed by Descriptive Words
1Section 74(2) of the Post Office Act 1969 (c. 48)....
2Section 27(1) of the Taxes Management Act 1970 (c. 9)....
3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4In the Finance Act 1970 (c. 24) Schedule 3 paragraph...
5Paragraph 15 of Schedule 9 to the Finance Act 1974...
6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Translation of references to enactments repealed and re-enacted
9In the enactments specified in column 1 of the following...
SCHEDULE 8 Repeals

Royal arms

Capital Gains Tax Act 1979

1979 CHAPTER 14

An Act to consolidate Part III of the Finance Act 1965 with related provisions in that Act and subsequent Acts.