Capital Gains Tax Act 1979

3 (1) This paragraph applies where—

(a) there is, by virtue of section 54(1) or 55(1) of this Act (settled property), a disposal of an asset which is, or is an interest in, agricultural property within the meaning of Schedule 8 to the [1975 c. 7.] Finance Act 1975, and

(b) apart from this paragraph, the disposal would not fall within paragraph (a) of paragraph 2(1) above by reason only that the agricultural property is not used for the purposes of a trade as mentioned in the said paragraph (a).

(2) Where this paragraph applies, paragraph 2(1) above shall apply in relation to the disposal if the circumstances are such that a reduction in respect of the asset—

(a) is made under Schedule 8 to the Finance Act 1975 in relation to a chargeable transfer taking place on the occasion of the disposal, or

(b) would be so made if there were a chargeable transfer on that occasion and a claim were duly made under that Schedule.