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Finance Act 1988

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This is the original version (as it was originally enacted).

Right of recovery

5(1)Where any tax becomes chargeable on and is paid by a person in respect of gains treated as accruing to him (or, if he is a married man, to his wife) under paragraph 1 above he shall be entitled—

(a)to recover the amount of the tax from any trustee of the settlement, and

(b)for that purpose to require an inspector to give him a certificate specifying—

(i)the amount of the gains accruing to the trustees in respect of which he has paid tax; and

(ii)the amount of tax paid;

and any such certificate shall be conclusive evidence of the facts stated in it.

(2)In order to ascertain for the purposes of sub-paragraph (1) above the amount of tax chargeable for any year by virtue of paragraph 1 above in respect of gains treated as accruing to any person, those gains shall be regarded as forming the highest part of the amount on which he is chargeable to capital gains tax for the year.

(3)Where for the year 1988-89 or 1989-90—

(a)section 99(1) of this Act applies in relation to a husband and wife, and

(b)gains are treated by virtue of paragraph 1 above as accruing to either of them, and

(c)tax at a rate equivalent to the higher rate of income tax is charged on the whole or part of the chargeable amount (within the meaning of section 99) of either of them,

sub-paragraphs (4) and (5) below shall have effect for ascertaining for the purposes of sub-paragraph (1) above the amount of tax chargeable for the year in respect of gains treated as accruing by virtue of paragraph 1 above.

(4)Those gains shall be regarded as having been taxed at a rate equivalent to the higher rate of income tax so far as their amount does not exceed the amount (or the aggregate of the amounts) on which tax was charged as mentioned in sub-paragraph (3)(c) above, and otherwise as having been taxed at a rate equivalent to the basic rate of income tax.

(5)In a case where—

(a)section 99(3) applies, and

(b)the chargeable amounts of both husband and wife include gains treated as accruing by virtue of paragraph 1 above,

the extent to which the gains treated as accruing to the husband and the gains treated as accruing to the wife are regarded as having been taxed at a rate equivalent to the higher rate of income tax shall be proportionate to the amounts of those gains.

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