Capital Gains Tax Act 1979 (repealed 6.3.1992)

Part VIII U.K. Supplemental

Valuation U.K.

150 Valuation: general. U.K.

(1) In this Act “market value” in relation to any assets means the price which those assets might reasonably be expected to fetch on a sale in the open market.

(2) In estimating the market value of any assets no reduction shall be made in the estimate on account of the estimate being made on the assumption that the whole of the assets is to be placed on the market at one and the same time.

(3) The market value of shares or securities listed in The Stock Exchange Daily Official List shall, except where in consequence of special circumstances prices quoted in that List are by themselves not a proper measure of market value, be as follows—

(a) the lower of the two prices shown in the quotations for the shares or securities in The Stock Exchange Daily Official List on the relevant date plus one-quarter of the difference between those two figures, or

(b) halfway between the highest and lowest prices at which bargains, other than bargains done at special prices, were recorded in the shares or securities for the relevant date,

choosing the amount under paragraph (a) if less than that under paragraph (b), or if no such bargains were recorded for the relevant date, and choosing the amount under paragraph (b) if less than that under paragraph (a):

Provided that—

(i)

this subsection shall not apply to shares or securities for which The Stock Exchange provides a more active market elsewhere than on the London trading floor, and

(ii)

if the London trading floor is closed on the relevant date the market value shall be ascertained by reference to the latest previous date or earliest subsequent date on which it is open, whichever affords the lower market value.

(4) In this Act “market value” in relation to any rights of unit holders in any unit trust scheme the buying and selling prices of which are published regularly by the managers of the scheme shall mean an amount equal to the buying price (that is the lower price) so published on the relevant date, or if none were published on that date, on the latest date before.

[F1 (5) In relation to an asset of a kind the sale of which is subject to restrictions imposed under the M1 Exchange Control Act 1947 such that part of what is paid by the purchaser is not retainable by the seller the market value, as arrived at under subsection (1), subsection (3) or subsection (4) above, shall be subject to such adjustment as is appropriate having regard to the difference between the amount payable by a purchaser and the amount receivable by a seller.]

(6) The provisions of this section, with sections 151 to 153 below, have effect subject to Part I of Schedule 6 to this Act (market value at a time before the commencement of this Act).

Textual Amendments

F1 S. 150(5) repealed by Finance Act 1987 (c. 16), ss. 68(3), 72(7) and Sch. 16 Part XI except in relation to the determination of the market value of any assets at a time before 13 December 1979

Modifications etc. (not altering text)

C1 S. 150(1)–(3) applied by Finance Act 1990 (c. 29, SIF 58), s. 116(5)

C2 See Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), ss. 140(3), 187(2), 312(5)

C3 See Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 251(5)

C4 See Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 759(9)

Marginal Citations

M1 1947 c. 14.

[F2 151 Assets disposed of in a series of transactions. U.K.

If a person is given, or acquires from one or more persons with whom he is connected, by way of two or more gifts or other transactions, assets of which the aggregate market value, when considered separately in relation to the separate gifts or other transactions, is less than their aggregate market value when considered together, then for the purposes of this Act their market value, where relevant, shall be taken to be the larger market value, to be apportioned rateably to the respective disposals.]

Textual Amendments

F2 S. 151 repealed by Finance Act 1985 (c. 54), ss. 71(5), 98(6) and Sch. 27 Part VII with respect to gifts or other transactions occurring after 19 March 1985

152 Unquoted shares and securities. U.K.

(1) The provisions of subsection (3) below shall have effect in any case where, in relation to an asset to which this section applies, there falls to be determined by virtue of section 150(1) above the price which the asset might reasonably be expected to fetch on a sale in the open market.

(2) The assets to which this section applies are shares and securities which are not quoted on a recognised stock exchange, within the meaning of section [F3 841] of [F4 the Taxes Act 1988], at the time as at which their market value for the purposes of tax on chargeable gains falls to be determined.

(3) For the purposes of a determination falling within sub-section (1) above, it shall be assumed that, in the open market which is postulated for the purposes of that determination, there is available to any prospective purchaser of the asset in question all the information which a prudent prospective purchaser of the asset might reasonably require if he were proposing to purchase it from a willing vendor by private treaty and at arm’s length.

Textual Amendments

F3 Figure substituted by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), Sch. 29 paras. 15 and 32

F4 Words substituted by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), Sch. 29 paras. 15 and 32

Modifications etc. (not altering text)

C5 S. 152 applied by Finance Act 1990 (c. 29, SIF 58), s. 116(5)

C6 See Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 251(6)

153 Value determined for capital transfer tax. U.K.

Where on the death of any person capital transfer tax is chargeable on the value of his estate immediately before his death and the value of an asset forming part of that estate has been ascertained (whether in any proceedings or otherwise) for the purposes of that tax, the value so ascertained shall be taken for the purposes of this Act to be the market value of that asset at the date of the death.

Other provisions U.K.

154 Income tax decisions. U.K.

Any assessment to income tax or decision on a claim under the Income Tax Acts, and any decision on an appeal under the Income Tax Acts against such an assessment or decision, shall be conclusive so far as under Chapter II of Part II of this Act, or any other provision of this Act, liability to tax depends on the provisions of the Income Tax Acts.

155 Interpretation. U.K.

(1) In this Act, unless the context otherwise requires—

• “allowable loss” has the meaning given by section 29 above,

• “the Board” means the Commissioners of Inland Revenue,

• “chargeable gain” has the meaning given by section 28(2) above,

• “chargeable period” means a year of assessment or an accounting period of a company for purposes of corporation tax,

• “close company” has the meaning given by sections [F5 414 and 415] of [F5 the Taxes Act 1988],

• “company” includes any body corporate or unincorporated association but does not include a partnership, and shall be construed in accordance with section 93 above (application of Act to unit trusts),

• “control” shall be construed in accordance with section [F6 416] of [F5 the Taxes Act 1988],

• “inspector” means any inspector of taxes,

• “land” includes messuages, tenements, and hereditaments, houses and buildings of any tenure,

• [F7 “local authority” has the meaning given by section 842A of the Taxes Act 1988,]

• “married woman living with her husband”: see subsection (2) below,

• “part disposal” has the meaning given by section 19(2) above,

• “personal representatives” has the meaning given by section [F5 701(4)] of [F5 the Taxes Act 1988],

• “quoted” on a stock exchange, or recognised stock exchange, in the United Kingdom: see subsection (3) below,

• [F8 “recognised stock exchange” has the meaning given by section 841 of the Taxes Act 1988,]

• [F9 “the Taxes Act 1970” and “the Taxes Act 1988” mean the M2 Income and Corporation Taxes Act 1970 and M3 Income and Corporation Taxes Act 1988 respectively,]

• “trade” has the same meaning as in the Income Tax Acts,

• “trading stock” has the meaning given by section [F5 100(2)] of [F5 the Taxes Act 1988],

• “wasting asset” has the meaning given by section 37 above and paragraph 1 of Schedule 3 to this Act,

• “year of assessment” means, in relation to capital gains tax, a year beginning on 6th April and ending on 5th April in the following calendar year, and “1979-80” and so on indicate years of assessment as in the Income Tax Acts.

[F10 (1A) In this Act “retail prices index” shall have the same meaning as in the Income Tax Acts and, accordingly, any reference in this Act to the retail prices index shall be construed in accordance with section 833(2) of the Taxes Act 1988.]

(2) References in this Act to a married woman living with her husband shall be construed in accordance with section [F11 282] of [F5 the Taxes Act 1988].

(3) References in this Act to quotation on a stock exchange in the United Kingdom or a recognised stock exchange in the United Kingdom shall be construed as references to listing in the Official List of The Stock Exchange.

[F12 (3A) In this Act “recognised futures exchange” means the London International Financial Futures Exchange and any other futures exchange which is for the time being designated for the purposes of this Act by order made by the Board.

(3B) An order made by the Board under subsection (3A) above—

(a) may designate a futures exchange by name or by reference to any class or description of futures exchanges, including, in the case of futures exchanges in a country outside the United Kingdom, a class or description framed by reference to any authority or approval given in that country; and

(b) may contain such transitional and other supplemental provisions as appear to the Board to be necessary or expedient.]

(4) The Table below indexes other general definitions in this Act.

Expression defined	Reference
“Absolutely entitled as against the trustee”	S. 46(2).
“Authorised unit trust”	s. 92
“Branch or agency”	S. 12(3).
“Class”, in relation to shares or securities.	S. 64(1).
“Connected”, in references to persons being connected with one another.	S. 63.
“Court investment fund”	S. 92.
“Gilt-edged securities”	Schedule 2.
“Investment trust”	S. 92.
“Issued”, in relation to shares or debentures	S.64(2).
“Lease” and cognate expressions	Paragraph 10(1) of Schedule 3.
“Legatee”	S. 47(2)(3)
“Market value”	Ss. 150 to 153; Part I of Schedule 6.
“Resident” and “ordinarily resident”	S. 18(1).
“Settled property”	S. 51.
“Shares”	S. 64(1).
“Unit trust scheme”	S. 92.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F13

Textual Amendments

F5 Words substituted by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), Sch. 29 paras. 15 and 32

F6 Figure substituted by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), Sch. 29 paras. 15 and 32

F7 Definition inserted by Finance Act 1990 (c. 29, SIF 63:1, 2), s. 127(2)(4)

F8 Definition inserted by Finance Act 1989 (c. 26, SIF 63:2), s. 124 and Sch. 14 para. 6(2) in relation to disposals on or after 14th March 1989 (except where relief given under Finance Act 1980 (c. 48), s. 79 in respect of a disposal before that date)

F9 Definitions substituted by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), Sch. 29 paras. 15 and 32

F10 S. 155(1A) inserted by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), Sch. 29 para. 27

F11 Figure substituted by Finance Act 1988 (c. 39, SIF 63;1, 2), s. 146 and Sch. 13 para. 18

F12 S. 155(3A)(3B) inserted by Finance Act 1985 (c. 54), s. 72(6)

F13 S. 155(5) repealed by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 844 and Sch. 31

Modifications etc. (not altering text)

C7 See Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 576(5)

Marginal Citations

M2 1970 c. 10.

M3 1988 c. 1.