Finance Act 1984

Initial calculations relevant to tax which may be postponed

4 (1) Where a claim is made, the determination referred to in paragraph 2(1) above shall, in the first instance, be made (in accordance with paragraph 6 below) by reference to—

(a) the amount defined in sub-paragraph (4) below as the unpaid tax;

(b) the amount defined in sub-paragraph (5) below as the tax already paid; and

(c) the aggregate value of any relevant benefits which, by virtue of paragraph 5 below, fall to be taken into account in relation to the claim.

(2) Subject to sub-paragraph (3) below, in this paragraph and paragraph 5 below "the base year" means the year of assessment which precedes the relevant year of assessment in relation to the attributed gain or, as the case may be, the earliest of the attributed gains to which the claim relates.

(3) Where the relevant year of assessment referred to in sub-paragraph (2) above is the year 1965-66, the base year is also that year of assessment.

(4) In relation to a claim, " the unpaid tax " means the amount of tax—

(a) which is referable to the attributed gain (or attributed gains) to which the claim relates; and

(b) which remains unpaid at the date of the claim.

(5) In relation to a claim, " the tax already paid" means the amount of tax—

(a) which has been paid at the date of the claim, excluding any tax which was so paid, or is or was otherwise borne, by the trustees of the settlement to which the claim relates; and

(b) which is referable to any attributed gains—

(i) which have accrued to the beneficiary by virtue of the settlement to which the claim relates; and

(ii) for which the relevant year of assessment is, or is later than, the base year ; and

(iii) which are not ineligible gains.