Finance Act 1985

1 (1) In section 86, in subsection (1), paragraphs (b) and (c) and the word “and” at the end of paragraph (a) shall be omitted.

X1 (2) In subsection (2) of that section, for paragraph (a) there shall be substituted—

“(a) “the unindexed gain or loss” means the amount of the gain or loss on the disposal computed in accordance with Chapter II of Part II of the Capital Gains Tax Act 1979 and, if there is neither a gain nor a loss on the disposal as so computed, the unindexed gain or loss shall be nil];”

and in paragraph (b) for the words “gross gain” there shall be substituted “unindexed gain or loss”.

X1 (3) In subsection (4) of that section for the words from “allowed” to “extinguish it” there shall be substituted “set against the unindexed gain or, as the case may be, added to the unindexed loss so as to give the gain or loss for the purposes of the Capital Gains Tax Act 1979 as follows,—

(a) if there is an unindexed gain, the indexation allowance shall be deducted from the gain and, if the allowance exceeds the unindexed gain, the excess shall constitute a loss;

(b) if there is an unindexed loss, the indexation allowance shall be added to it so as to increase the loss; and

(c) if the unindexed gain or loss is nil, there shall be a loss equal to the indexation allowance”.

(4) Subsection (5) of that section shall be omitted.

Editorial Information

X1 Part of the text of ss. 67(2), 72(6), 90(3)-(5), 91(1) and (3), 92(2)(4), 96(1), Sch. 19 paras. 1(2)(3), 2(2), 3(3), 5(5)( a ), 20(2), Sch. 27 is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals that may have been made prior to 1.2.1991

Modifications etc. (not altering text)

C1 Finance Act 1988 (c. 39, SIF 63:1,2), s. 113—paragraphs 1(3), 2 and 5 not to apply to certain disposals of building society and industrial and provident society shares made on or after 4 July 1987. Finance Act 1990 (c. 29,SIF 63:1, 2), s. 54—paras. 1(3), 2, 5, 7(3), 8(1)(b) and (c), 11 to 15, 18, 22 and 23 not to apply to certain building society shares etc. held by collective investment schemes and disposed of on or after 20 March 1990.