Finance Act 1988

Previous no gain/no loss disposals U.K.

1 (1) Where—

(a) a person makes a disposal, not being a no gain/no loss disposal, of an asset which he acquired after 31st March 1982, and

(b) the disposal by which he acquired the asset and any previous disposal of the asset after 31st March 1982 was a no gain/no loss disposal,

he shall be treated for the purposes of section 96 of this Act as having held the asset on 31st March 1982.

(2) For the purposes of this paragraph a no gain/no loss disposal is one on which by virtue of any of the enactments specified in sub-paragraph (3) below neither a gain nor a loss accrues to the person making the disposal.

(3) The enactments mentioned in sub-paragraph (2) above are—

(a) sections 44, 56, 123A, 146(3), 147(4), 148 and 149A of the M1 Capital Gains Tax Act 1979;

(b) sections 267, 273, [F1 273A ,] 340(7), 342, 342A, 342B, 343(5) and 352(7) of the Taxes Act 1970;

(c) section 148 of the M2 Finance Act 1982;

(d) section 7 of the M3 Finance (No.2) Act 1983;

(e) paragraph 2 of Schedule 2 to the M4 Trustee Savings Banks Act 1985;

[F2 (ee) section 130(3) of the Transport Act 1985;]

(f) section 486(8) of the Taxes Act 1988; F3 . . .

(g) paragraph 4 of Schedule 12 to this Act [F4 F5 . . .;

(h) paragraph 2(1) of Schedule 12 to the Finance Act 1990.][F6 and

(i) section 78(2) of the Finance Act 1991.]

Textual Amendments

F1 Word in Sch. 8 para. 1(3)(b) inserted(for disposals on or after 20.03.1990) by Finance Act 1990 (c. 29, SIF 63:1,2), s. 70(7)(b)(9).

F2 Sch. 8 para. 1(3)(ee) inserted(retrosp.) by Finance Act 1989 (c. 26, SIF 63:2), s. 141, Sch. 15 para. 4(2).

F3 Word at end of Sch. 8 para. 1(3)(f) repealed(where the valuation date is on or after 20.03.1990) by Finance Act 1990 (c. 29, SIF 63:1), s. 132, Sch. 19 Pt. IV Note 13.

F4 Sch. 8 para. 1(3)(h) and word preceeding it added by Finance Act 1990 (c. 29, SIF 63:1), s. 80, Sch. 12 para. 2(2).

F5 Word in Sch. 8 para. 1(3)(g) repealed (25.07.1991) by Finance Act 1991 (c. 31, SIF 63:1), ss. 78(1)(7), 123, Sch. 19 Pt.V

F6 Sch. 8 para. 1(3)(i) and word preceding it inserted (25.07.1991) by Finance Act 1991 (c. 31, SIF 63:1), s. 78(1)(7)

Marginal Citations

M1 1979 c. 14.

M2 1982 c. 39.

M3 1983 c. 49.

M4 1985 c. 58.

2 (1) Sub-paragraph (2) below applies where a person makes a disposal of an asset acquired by him on or after 6th April 1988 in circumstances in which either of the relevant enactments applied.

(2) Where this sub-paragraph applies—

(a) an election under subsection (5) of section 96 of this Act by the person making the disposal shall not cover the disposal, but

(b) the making of such an election by the person from whom the asset was acquired shall cause the disposal to fall outside subsection (3) of that section (so that subsection (2) of that section is not excluded by it) whether or not the person making the disposal makes such an election.

(3) Where the person from whom the asset was acquired by the person making the disposal himself acquired it on or after 6th April 1988 in circumstances in which either of the relevant enactments applied, an election made by him shall not have the effect described in sub-paragraph (2)(b) above but an election made by—

(a) the last person by whom the asset was acquired after 5th April 1988 otherwise than in such circumstances, or

(b) if there is no such person, the person who held the asset on 5th April 1988,

shall have that effect.

(4) In this paragraph “the relevant enactments” means—

(a) section 273 of the Taxes Act 1970, and

(b) section 44 of the M5 Capital Gains Tax Act 1979.

Marginal Citations

M5 1979 c. 14.