Capital Gains Tax Act 1979 (repealed 6.3.1992)

146 Gifts to charities etc. U.K.

(1) Subsection (2) below shall apply where a disposal of an asset is made otherwise than under a bargain at arm’s length—

(a) to a charity, or

(b) to any of the bodies mentioned in [F1 Schedule 3 to the Capital Transfer Tax Act 1984] (gifts for national purposes, etc.).

(2) [F2 Section 29A(1)] above (consideration deemed to be equal to market value) and section 147(3) below shall not apply; but if the disposal is by way of gift (including a gift in settlement) or for a consideration not exceeding the sums allowable as a deduction under section 32 above, then—

(a) the disposal and acquisition shall be treated for the purposes of this Act as being made for such consideration as to secure that neither a gain nor a loss accrues on the disposal, and

(b) where, after the disposal, the asset is disposed of by the person who acquired it under the disposal, its acquisition by the person making the earlier disposal shall be treated for the purposes of this Act as the acquisition of the person making the later disposal.

(3) Where, otherwise than on the termination of a life interest (within the meaning of section 55 above) by the death of the person entitled thereto, any assets or parts of any assets forming part of settled property are, under section 54 [F3 or 55] above, deemed to be disposed of and re-acquired by the trustee, and—

(a) the person becoming entitled as mentioned in section 54(1) above is a charity, or a body mentioned in [F1 Schedule 3 to the Capital Transfer Tax Act 1984] (gifts for national purposes, etc.), [F4 or]

[F5 (b) any of the assets which, or parts of which, are deemed to be disposed of and re-acquired under section 55(1) above are held for the purposes of a charity, or a body mentioned in the said paragraph 12,]

then, if no consideration is received by any person for or in connection with any transaction by virtue of which the charity or other body becomes so entitled [F3 or the assets are so held], the disposal and re-acquisition of the assets to which the charity or other body becomes so entitled [F3 or of the assets or parts of the assets which are held as mentioned in paragraph (b) above] shall, notwithstanding sections 54 [F3 and 55] above, be treated for the purposes of this Act as made for such consideration as to secure that neither a gain nor a loss accrues on the disposal.

Textual Amendments

F1 Words substituted by Inheritance Tax Act 1984 (c. 51), s. 276 and Sch. 8 para. 9

F2 Words substituted by Finance Act 1981 (c. 35, SIF 63:2), s. 90(3)(a) in relation to acquisitions and disposals on or after 10 April 1981

F3 Words repealed by Finance Act 1982 (c. 39, SIF 63:2), s. 157 and Sch. 22 Part VI in relation to disposals after 5 April 1982

F4 Word repealed by Finance Act 1982 (c. 39, SIF 63:2), s. 157 and Sch. 22 Part VI in relation to disposals after 5 April 1982

F5 S. 146(3)(b) repealed by Finance Act 1982 (c. 39, SIF 63:2), s. 157 and Sch. 22 Part VI in relation to disposals after 5 April 1982

Modifications etc. (not altering text)

C1 See— Diplomatic Privileges Act 1964 (c. 81); Commonwealth Secretariat Act 1966 (c. 10); International Organisations Act 1968 (c. 48); Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), s. 505

C2 See Finance Act 1988 (c. 39, SIF 63;1, 2), s. 96 and Sch. 8 para. 1