Capital Gains Tax Act 1979 (repealed 6.3.1992)

  1. Introductory Text

  2. Part I General

    1. Capital gains tax and corporation tax

      1. 1. Taxation of capital gains.

    2. Capital gains tax

      1. 2. Persons chargeable.

      2. 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      3. 4. Gains chargeable to tax.

      4. 5. Exemption for first £3,000 of gains

      5. 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      6. 7. Time for payment of tax.

      7. 7A. Payment by instalments of tax on gifts.

      8. 8, 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

    3. The foreign element

      1. 10. Double taxation relief.

      2. 11. Allowance for foreign tax.

      3. 12. Non-resident with United Kingdom branch or agency.

      4. 13. Foreign assets: delayed remittances.

      5. 14. Foreign assets of person with foreign domicile.

      6. 15. Non-resident company.

      7. 16. Non-resident group of companies.

      8. 17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      9. 18. Residence etc. and location of assets.

  3. Part II Gains and Losses

    1. Chapter I Disposals

      1. 19. Disposal of assets.

    2. 20. Capital sums derived from assets.

    3. 21. Capital sums: compensation and insurance money.

    4. 22. Assets lost or destroyed, or whose value becomes negligible.

    5. 23. Mortgages and charges.

    6. 24. Hire-purchase.

    7. 25. Value shifting.

    8. 26. Value shifting: further provisions.

    9. 26A. Value shifting: distributions within a group followed by a disposal of shares.

    10. 26B.(1) The references in section 26 above to a reduction...

    11. 26C.(1) For the purposes of sections 26(1A) and 26A(7) to...

    12. 26D.(1) Where— (a) but for sections 78 and 85(3) below,...

    13. 27. Time of disposal and acquisition where asset disposed of under contract.

    14. Chapter II Computation

      1. 28. Chargeable gains.

    15. 29. Losses.

    16. 29A.(1) Subject to the provisions of this Act a person’s...

    17. Computation of gains

      1. 30. Introductory.

      2. 31. Consideration chargeable to tax on income.

      3. 32. Expenditure: general.

      4. 32A. Expenditure: amounts to be included as consideration.

      5. 33. Exclusion of expenditure by reference to tax on income.

      6. 33A.(1) Where there is a transfer of securities within the...

      7. 34. Restriction of losses by reference to capital allowances and renewals allowances.

      8. 35. Part disposals.

      9. 36. Assets derived from other assets.

      10. 37. Wasting assets.

      11. 38. Wasting assets: straightline restriction of allowable expenditure.

      12. 39. Wasting assets qualifying for capital allowances.

      13. 40. Consideration due after time of disposal.

      14. 41. Contingent liabilities.

      15. 42. Expenditure reimbursed out of public money.

      16. 43. Supplemental.

  4. Part III Persons and Trusts

    1. Married persons

      1. 44. Husband and wife.

      2. 45. Tax on married woman’s gains.

    2. Trustees, nominees and personal representatives

      1. 46. Nominees and bare trustees.

      2. 47. Expenses in administration of estates and trusts.

      3. 48. Liability for tax.

    3. Death

      1. 49. Death: general provisions.

      2. 50. Death: application of law in Scotland.

    4. Settlements

      1. 51. Meaning of “settled property”.

      2. 52. Trustees of settlements.

      3. 53. Gifts in settlement.

      4. 54. Person becoming absolutely entitled to settled property.

      5. 55. Termination of life interest etc.

      6. 56. Death of life tenant: exclusion of chargeable gain.

      7. 56A. Effect on sections 55 and 56 of relief under Finance Act 1980, section 79.

      8. 57. Death of annuitant.

      9. 58. Disposal of interests in settled property.

    5. Other cases

      1. 59. Gifts: recovery from donee.

      2. 60. Partnerships.

      3. 61. Insolvents’ assets.

      4. 62. Transactions between connected persons.

      5. 63. Connected persons: interpretation.

  5. Part IV Shares and Securities

    1. Chapter I General

      1. 64. Interpretation.

    2. Rules of identification

      1. 65. Pooling.

      2. 66. Disposal on or before day of acquisition.

    3. Gilt-edged securities

      1. 67. Exemptions for gilt-edged securities and qualifying corporate bonds etc.

      2. 68. Identification (general).

      3. 69. Identification: disposal to husband or wife and third person.

      4. 70. Re-acquisition after sale at a loss.

    4. Savings certificates, etc.

      1. 71. Exemption for government non-marketable securities.

    5. Capital distribution in respect of shares, etc.

      1. 72. Distribution which is not a new holding within Chapter II.

      2. 73. Disposal of right to acquire shares.

    6. Close companies

      1. 74. Disposal of shares: relief in respect of income tax consequent on shortfall in distributions.

      2. 75. Shares in close company transferring assets at an undervalue.

    7. Share option schemes

      1. 76. Consideration for acquisition of shares under share option schemes.

    8. Chapter II Reorganisation of Share Capital, Conversion of Securities, Etc.

      1. Reorganisation or reduction of share capital

        1. 77. Application of sections 78 to 81.

        2. 78. Equation of original shares and new holding.

        3. 79. Consideration given or received by holder.

        4. 80. Part disposal of new holding.

        5. 81. Composite new holdings.

      2. Conversion of securities

        1. 82. Equation of converted securities and new holding.

        2. 83. Premiums on conversion of securities.

        3. 84. Compensation stock.

      3. Company reconstructions and amalgamations

        1. 85. Exchange of securities for those in another company.

        2. 86. Reconstruction or amalgamation involving issue of securities.

        3. 87. Restriction on application of sections 85 and 86.

        4. 88. Procedure for clearance in advance.

      4. Stock dividends

        1. 89. Stock dividends: consideration for new holding.

        2. 90. Capital gains on certain stock dividends.

      5. Quoted options

        1. 91. Application of Chapter II to quoted options.

    9. Chapter III Unit Trusts etc.

      1. Preliminary

        1. 92. Interpretation.

        2. 93. Application of Act to unit trusts.

      2. General

        1. 94. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      3. Unit trusts

        1. 95. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        2. 96. Unit trusts for exempt unit holders.

        3. 97. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        4. 98. Transfer of company’s assets to unit trust which later comes within section 96 or 97.

      4. Court investment funds etc.

        1. 99. Funds in court.

        2. 100. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

  6. Part V Land

    1. Private residences

      1. 101. Relief on disposal of private residence.

      2. 102. Amount of relief.

      3. 103. Amount of relief: further provisions.

      4. 104. Private residence occupied under terms of settlement.

      5. 105. Private residence occupied by dependent relative.

    2. Leases

      1. 106. Leases of land and other assets.

    3. Part disposals

      1. 107. Small part disposals.

      2. 108. Part disposal to authority with compulsory powers.

      3. 109. Part disposal: consideration exceeding allowable expenditure.

    4. Compulsory acquisition

      1. 110. Compensation paid on compulsory acquisition.

      2. 111. Time of disposal and acquisition.

      3. 111A. Roll-over relief on compulsory acquisition.

      4. 111B.(1) Land is excluded from paragraph (c) of subsection (1)...

    5. Agricultural land and woodlands

      1. 112. Grants for giving up agricultural land.

      2. 113. Woodlands.

    6. Development land tax etc.

      1. 114. Interaction with development land tax and other taxation.

  7. Part VI Property: Further Provisions

    1. Replacement of business assets

      1. 115. Roll-over relief.

      2. 116. Assets only partly replaced.

      3. 117. New assets which are depreciating assets.

      4. 118. Relevant classes of assets.

      5. 119. Assets of Class 1.

      6. 120. Trade carried on by family company: business assets dealt with by individual.

      7. 121. Activities other than trades, and interpretation.

    2. Stock in trade

      1. 122. Appropriations to and from stock.

    3. Transfer of business to a company

      1. 123. Roll-over relief on transfer of business.

      2. 123A.(1) For the purposes of this Act any asset transferred...

    4. Transfer of business on retirement

      1. 124. Relief on transfer.

      2. 125. Transfer by way of capital distribution from family company.

    5. Gifts of business assets

      1. 126. Relief for gifts of business assets.

      2. 126A. Section 126 relief: gifts to non-residents.

      3. 126B. Section 126 relief: gifts to foreign-controlled companies.

      4. 126C. Section 126 relief: emigration of controlling trustees.

    6. Movable property

      1. 127. Wasting assets.

      2. 128. Chattel exemption.

      3. 129. Leases of property other than land.

      4. 130. Passenger vehicles.

      5. 131. Decorations for valour or gallant conduct.

    7. Other property

      1. 132. Commodities and other assets without earmark.

      2. 132A.(1) Subject to subsections (2) and (3) below, in computing...

      3. 133. Foreign currency for personal expenditure.

      4. 134. Debts.

      5. 135. Debts: foreign currency bank accounts.

      6. 136. Relief in respect of loans to traders.

      7. 136A. Relief for qualifying corporate bonds.

      8. 136B. Section 136A: supplementary.

      9. 137. Options and forfeited deposits.

      10. 138. Options: application of rules as to wasting assets.

      11. 139. Quoted options treated as part of new holdings.

  8. Part VII Other Provisions

    1. Insurance

      1. 140. Policies of insurance.

      2. 141. Disallowance of insurance premiums as expenses.

      3. 142. Underwriters.

      4. 142A. Disposal of assets in premiums trust fund etc.

      5. 143. Life assurance and deferred annuities.

    2. Superannuation funds, annuities and annual payments

      1. 144. Superannuation funds, annuities and annual payments.

    3. Profit sharing and share option schemes

      1. 144A. Approved profit sharing and share option schemes.

    4. Other exemptions and reliefs

      1. 145. Charities.

      2. 146. Gifts to charities etc.

      3. 146A.(1) Subsection (2) below shall apply where—

      4. 147. Works of art etc.

      5. 147A. Gifts on which inheritance tax is chargeable etc.

      6. 147B. Section 147A relief: gifts to non-residents.

      7. 148. Maintenance funds for historic buildings.

      8. 149. Employee trusts.

      9. 149A. Building societies and life policies.

      10. 149B. Miscellaneous exemptions.

      11. 149C. Business expansion schemes.

      12. 149D. Personal equity plans.

  9. Part VIII Supplemental

    1. Valuation

      1. 150. Valuation: general.

      2. 151. Assets disposed of in a series of transactions.

      3. 152. Unquoted shares and securities.

      4. 153. Value determined for capital transfer tax.

    2. Other provisions

      1. 154. Income tax decisions.

      2. 155. Interpretation.

  10. Part IX General

    1. 156. Commencement.

    2. 157. Savings, transitory provisions and consequential amendments.

    3. 158. Repeals.

    4. 159. Continuity and construction of references to old and new law.

    5. 160. Short title.

  11. SCHEDULES

    1. SCHEDULE 1

      Application of Exempt Amount in Particular Cases

      1. Preliminary

        1. 1.In this Schedule references to any subsections not otherwise identified...

      2. Husband and wife

        1. 2.(1) For any year of assessment during which a married...

        2. 3.(1) For any year of assessment during which or during...

      3. Personal representatives

        1. 4.For the year of assessment in which an individual dies...

      4. Trustees

        1. 5.(1) For any year of assessment during the whole or...

        2. 6.(1) For any year of assessment during the whole or...

    2. SCHEDULE 2

      Gilt-Edged Securities

      1. Part I

        1. 1.For the purposes of this Act “gilt-edged securities” means the...

        2. 2.The Treasury shall cause particulars of any order made under...

        3. 3.Section 14(b) of the Interpretation Act 1978 (implied power to...

      2. Part II Existing Gilt-Edged Securities

        1. Stocks and bonds charged on the National Loans Fund

        2. Securities issued by certain public corporations and guaranteed by the Treasury

    3. SCHEDULE 3

      Leases

      1. Leases of land as wasting assets: curved line restriction of allowable expenditure

        1. 1.(1) A lease of land shall not be a wasting...

      2. Premiums for leases

        1. 2.(1) Subject to this Schedule where the payment of a...

        2. 3.(1) This paragraph applies in relation to a lease of...

      3. Sub-leases out of short leases

        1. 4.(1) In the computation under Chapter II or Part II...

      4. Exclusion of premiums taxed under Schedule A etc.

        1. 5.(1) Where by reference to any premium income tax has...

        2. 6.(1) If under section 37(4) of the Taxes Act 1988...

        3. 7.If under section 34(2) and (3) of the Taxes Act...

      5. Duration of leases

        1. 8.(1) In ascertaining for the purposes of this Act the...

      6. Leases of property other than land

        1. 9.(1) Paragraphs 2, 3, 4 and 8 of this Schedule...

      7. Interpretation

        1. 10.(1) In this Act, unless the context otherwise requires “lease”—...

    4. SCHEDULE 4

      Relief for Gifts of Business Assets

      1. Part I Agricultural Property and Settled Property

        1. Agricultural property

          1. 1.(1) This paragraph applies where— (a) there is a disposal...

        2. Settled property

          1. 2.(1) If— (a) the trustees of a settlement make a...

          2. 3.(1) This paragraph applies where— (a) there is, by virtue...

      2. Part II Reductions in Held-Over Gain

        1. Application and interpretation

          1. 4.(1) The provisions of this Part of this Schedule apply...

        2. Reductions peculiar to disposals of assets

          1. 5.(1) If, in the case of a disposal of an...

          2. 6.(1) If, in the case of a disposal of an...

        3. Reduction peculiar to disposal of shares

          1. 7.(1) If in the case of a disposal of shares...

        4. Reduction where gain partly relieved by retirement relief

          1. 8.(1) If, in the case of a disposal of an...

    5. SCHEDULE 5

      Assets Held on 6th April 1965

      1. Part I Quoted Securities

        1. Deemed acquisition at 6th April 1965 value

          1. 1.(1) This paragraph applies— (a) to shares and securities which...

        2. Restriction of gain or loss by reference to actual cost

          1. 2.(1) Subject to the rights of election conferred by paragraphs...

        3. Exclusion of pooling

          1. 3.(1) Subject to the rights of election conferred by paragraphs...

        4. Election for pooling

          1. 4.(1) If a person so elects, quoted securities covered by...

        5. Election by principal company of group

          1. 5.(1) In the case of companies which at the relevant...

        6. Pooling at value on 6th April 1965: exchange of securities etc.

          1. 6.(1) Where a person who has made only one of...

        7. Underwriters

          1. 7.No election under paragraph 4 above shall cover quoted securities...

        8. Interpretation of paragraphs 3 to 7

          1. 8.(1) In paragraphs 3 to 7 above— “quoted securities” means...

      2. Part II Land Reflecting Development Value

        1. Valuation at 6th April 1965

          1. 9.(1) This paragraph shall apply in relation to a disposal...

        2. Allowance for betterment levy

          1. 10.Paragraph 9(1) above has effect subject to paragraph 21(2) of...

      3. Part III Other Assets

        1. Apportionment by reference to straightline growth of gain or loss over period of ownership

          1. 11.(1) This paragraph applies subject to Parts I and II...

        2. Election for valuation at 6th April 1965

          1. 12.(1) If the person making a disposal so elects paragraph...

        3. Unquoted shares, commodities, etc.

          1. 13.(1) This paragraph has effect as respects shares held by...

        4. Reorganisation of share capital, conversion of securities, etc.

          1. 14.(1) For the purposes of this Act, including Chapter II...

      4. Part IV Miscellaneous

        1. Capital allowances

          1. 15.If under any provision in this Schedule it is to...

        2. Assets transferred to close companies

          1. 16.(1) This paragraph has effect where— (a) at any time,...

        3. Husbands and wives

          1. 17.Where section 44 of this Act is applied in relation...

        4. Compensation and insurance money

          1. 18.Where section 21(4)(a) of this Act applies to exclude a...

    6. SCHEDULE 6

      Transitory

      1. Part I Valuation

        1. Preliminary

          1. 1.This Part of this Schedule has effect in cases where...

        2. Original rules

          1. 2.(1) “Market value” in relation to any assets means the...

        3. Value of quoted securities on 6th April 1965

          1. 3.(1) For the purpose of ascertaining the market value of...

        4. References to Stock Exchange on or after 25th March 1973

          1. 4.Except in relation to anything done before 25th March 1973,...

        5. Unquoted shares and securities: application of section 152 to acquisitions before commencement of this Act

          1. 5.Paragraphs 6 to 8 below shall have effect with respect...

          2. 6.Subject to paragraphs 7 and 8 below, if the market...

        6. Unquoted shares or securities: acquisition on death

          1. 7.(1) This paragraph applies if, in a case where the...

        7. Unquoted shares or securities: prior part disposal

          1. 8.(1) In any case where— (a) before 6th July 1973...

        8. Value determined for estate duty

          1. 9.(1) Where estate duty (including estate duty leviable under the...

      2. Part II Assets Acquired Before Commencement

        1. Events before commencement

          1. 10.(1) The substitution of this Act for the corresponding enactments...

      3. Part III Other Transitory Provisions

        1. Value-shifting

          1. 11.Section 26 of this Act applies only where the reduction...

        2. Assets acquired on disposal chargeable under Case VII of Schedule D

          1. 12.(1) In this paragraph references to a disposal chargeable under...

        3. Unrelieved Case VII losses

          1. 13.Where no relief from income tax (for a year earlier...

        4. Dispositions before 27th March 1974 which attract capital transfer tax

          1. 14.Paragraphs 15 and 16 below have effect in respect of...

        5. Gifts subject to capital transfer tax on death

          1. 15.(1) Where the value of any asset comprised in a...

        6. Life interest terminated on death on which capital transfer tax is chargeable

          1. 16.Where a life interest within the meaning of section 55...

        7. Devaluation of sterling: securities acquired with borrowed foreign currency

          1. 17.(1) This paragraph applies where, in pursuance of permission granted...

        8. Devaluation of sterling: foreign insurance funds

          1. 18.(1) The sums allowable as a deduction under section 32(1)(a)...

        9. Gilt-edged securities past redemption date

          1. 19.So far as material for the purposes of this or...

        10. Reorganisation of share capital, conversion of securities, etc.

          1. 20.(1) Chapter II of Part IV of this Act has...

        11. Land: allowance for betterment levy

          1. 21.(1) Where betterment levy charged in the case of any...

        12. Replacement of business assets

          1. 22.(1) Sections 115 to 121 of this Act (which are...

        13. Transfer of business to a company

          1. 23.Section 123 of this Act shall have effect as if...

        14. Works of art etc.

          1. 24.The repeals made by this Act do not affect the...

        15. Disposal before acquisition

          1. 25.The substitution of this Act for the corresponding enactments repealed...

        16. Estate duty

          1. 26.Nothing in the repeals made by this Act shall affect...

        17. Income and corporation tax: premiums on leases

          1. 27.The repeal by this Act of section 116(3) of the...

        18. Validity of subordinate legislation

          1. 28.So far as this Act re-enacts any provision contained in...

        19. Saving for Part II of this Schedule

          1. 29.The provisions of this Part of this Schedule are without...

    7. SCHEDULE 7

      Consequential Amendments

      1. Taxes Management Act 1970 (c. 9)

        1. 1.(1) The Taxes Management Act 1970 shall be amended as...

      2. Income and Corporation Taxes Act 1970 (c. 10)

        1. 2.(1) The Taxes Act shall be amended as follows.

      3. Finance Act 1974 (c. 30)

        1. 3.For paragraph 18(6) of Schedule 3 to the Finance Act...

        2. 4.For paragraph 19 of Schedule 3 to the Finance Act...

        3. 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

      4. Development Land Tax Act 1976 (c. 24)

        1. 6.(1) Paragraph 5 of Schedule 6 to the Development Land...

      5. Finance Act 1976 (c. 40)

        1. 7.For section 54(5) of the Finance Act 1976 substitute—

      6. Translation of references to Part III of Finance Act 1965

        1. 8.In the enactments specified in the Table below substitute “...

      7. TABLE Part I

        1. 1.In the Taxes Management Act 1970 (c. 9) section 11(1)(b)...

        2. 2.In the Income and Corporation Taxes Act 1970 (c. 10)...

        3. 3.In the Finance Act 1970 (c. 24) . . ....

        4. 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        5. 5.In the Finance Act 1973 (c. 51) section 38(3) section...

        6. 6.In the Finance Act 1974 (c. 30) section 40(3)(a) section...

        7. 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        8. 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        9. 9.In the Finance Act 1976 (c. 40) . . ....

        10. 10.In the Finance Act 1977 (c. 36) section 42(1) (see...

      8. Part II References to Part III of Finance Act 1965 Followed by Descriptive Words

        1. 1.Section 74(2) of the Post Office Act 1969 (c. 48)....

        2. 2.Section 27(1) of the Taxes Management Act 1970 (c. 9)....

        3. 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        4. 4.In the Finance Act 1970 (c. 24) Schedule 3 paragraph...

        5. 5.Paragraph 15 of Schedule 9 to the Finance Act 1974...

        6. 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

        7. Translation of references to enactments repealed and re-enacted

          1. 9.In the enactments specified in column 1 of the following...

    8. SCHEDULE 8

      Repeals