(1)This section applies where there is or has been a disposal od an asset to the trustees of a settlement in such circumstances that, on a claim for relief, section [F1126 or 147A of the Capital Gains Tax Act 1979 (relief] for gifts) aplies, or would but for this section apply, so as to reduce the amounts of the chargeable gain and the consideration referred to in [F1subsection (3)] of that section.
(2)In this section—
(a)“a relevant disposal” means such disposal as is referred to in subsection (1) above;and
(b) “the 1980 provision” means section 79 of the Finance Act 1980 F2.
(3)Relief under [F1section 126 or 147A of the Capital Gains Tax Act 1979] shall not be available on a relevant disposal occurring on or after 18th March 1986 if—
(a)at the material time the trustees to whom the disposal is made fall to be treated, under section 52 of the Capital Gains Tax Act, as resident and ordinarily resident in the United Kingdom, although the general administration of the rtrust is ordinarily carried on outside the United Kingdom; and
(b)on a notional disposal of the asset concerned occurring on immediately after the material time, the trustees would be regarded for the purposes of any double taxation relief arrangements—
(i)as resident in a territory outside the United Kingdom to tax on a gain arising on that disposal.
(4)In subsection (3) above—
(a)“the material time” means the time of the relevant disposal;
(b)a “notional disposal” means a disposal by the trustees of the asset which was the subject of the relevant disposal; and
(c)“double taxation relief arrangements” means arrangements having effect by virtue of section [F3788 or 789 of the Taxes Act 1988] (as extended to capital gains tax by section 10 of the Capital Gains Tax Act 1979).
F4(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1Finance Act 1989 (c. 26, SIF 63:1, 2), s. 124, Sch. 14 para. 6(5)(a)(b)in relation to disposals on or after 14 March 1989 (except where relief given under 1980 s. 79 in respect of a disposal before that date). Previously
“section 79 of the Finance Act 1980 (general relief”, “subsectiuon (1)”
and
“the 1980 provision”
respectively.
F2Repealed by ss. 124 and 187 and Schs. 14 para. 6(5)(b), 17 Part VII in relation to disposals on or after 14 March 1989 (except where relief given under 1980 s. 79 in respect of a disposal before that date).
F4S. 58(5) repealed (25.7.1991) by Finance Act 1991 (c. 31, SIF 63:2), ss. 92(4)(7), 123, Sch. 19 Pt.VI, Note 4. The repeal of s. 58(5) applies where the time subsequent to the relevant disposal, and referred to in s. 58(5)(b) falls on or after 19.3.1991.