5The following section shall be inserted after section 7 of the M1 Capital Gains Tax Act 1979—
“7A(1)Subsection (2) below applies where—
(a)the whole or any part of any assets to which this section applies isdisclosed of by way of gift or is deemed to be disposed of under section 54(1)or 55(1) below, and
(b)the disposal is one—
(i)to which neither section 126(3) nor section 147A(3) below applies (orwould apply if a claim were duly made), or
(ii)to which either of those sections does apply but on which the held-overgain (within the meaning of the section applying) is less than the chargeablegain which would have accrued on that disposal apart from that section.
(2)Where this subsection applies, the capital gains tax chargeable on a gainaccruing on the disposal may, if the person paying it by notice in writing tothe inspector so elects, be paid by ten equal yearly instalments.
(3)The assets to which this section applies are—
(a)land or an estate or interest in land,
(b)any shares or securities of a company which, immediately before thedisposal, gave control of the company to the person by whom the disposal wasmade or deemed to be made, and
(c)any shares or securities of a company not falling under paragraph (b)above and not quoted on a recognised stock exchange nor dealt in on theUnlisted Securities Market.
(4)Where tax is payable by instalments by virtue of this section, the firstinstalment shall be due on the day on which the tax would be payable apartfrom this section.
(5)Subject to the following provisions of this section —
(a)tax payable by instalments by virtue of this section shall carry interestin accordance with Part IX (except section 88) of the Taxes Management Act 1970, and
(b)the interest on the unpaid portion of the tax shall be added to eachinstalment and paid accordingly.
(6)Tax payable by instalments by virtue of this section which is for the timebeing unpaid, with interest to the date of payment, shall become due andpayable immediately if—
(7)Tax which apart from this subsection would be payable by instalments byvirtue of this section and which is for the time being unpaid, with interestto the date of payment, shall become due and payable immediately if—
(a)the disposal was by way of gift to a person connected with the donor orwas deemed to be made under section 54(1) or 55(1) below, and
(b)the assets are disposed of for valuable consideration under a subsequentdisposal (whether or not the subsequent disposal is made by the person whoacquired them under the first disposal).”
Marginal Citations
M11979c. 14.