Capital Gains Tax Act 1979 (repealed 6.3.1992)

107 Small part disposals. U.K.

(1) This section applies to a transfer of land forming part only of a holding of land, where—

(a) the amount or value of the consideration for the transfer [F1 does not exceed one-fifth of] the market value of the holding as it subsisted immediately before the transfer, and

(b) the transfer is not one which, by virtue of section 44 above (transfers between husband and wife) or section 273(1) of [F2 the Taxes Act 1970] (transfers within groups of companies), is treated as giving rise to neither a gain nor a loss.

(2) Subject to subsection (3) below, if the transferor so claims, the transfer shall not be treated for the purposes of this Act as a disposal, but all sums which, if it had been so treated, would have been brought into account as consideration for that disposal in the computation under Chapter II of Part II of this Act of a gain accruing on the disposal shall be deducted from any expenditure allowable under that Chapter as a deduction in computing a gain on any subsequent disposal of the holding.

(3) This section shall not apply—

(a) if the amount or value of the consideration for the transfer exceeds [F3 £20,000], or

(b) where in the year of assessment in which the transfer is made, the transferor made any other disposal of land, if the total amount or value of the consideration for all disposals of land made by the transferor in that year exceeds [F3 £20,000].

(4) No account shall be taken under subsection (3) above of any transfer of land to which section 108 below applies.

(5) In relation to a transfer which is not for full consideration in money or money’s worth “the amount or value of the consideration” in this section shall mean the market value of the land transferred.

(6) For the purposes of this section the holding of land shall comprise only the land in respect of which the expenditure allowable under paragraphs (a) and (b) of section 32(1) above would be apportioned under section 35 above if the transfer had been treated as a disposal (that is, as a part disposal of the holding).

(7) In this section references to a holding of land include references to any estate or interest in a holding of land, not being an estate or interest which is a wasting asset, and references to part of a holding shall be construed accordingly.

Textual Amendments

F1 Words substituted by Finance Act 1986 (c. 41), s. 60 in relation to disposals on or after 6 April 1986

F2 Words substituted by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), Sch. 29 para. 15

F3 “£20,000” substituted by Finance Act 1984 (c. 43, SIF 63:2), s. 63(2) in relation to disposals on or after 6 April 1983