Finance Act 1989

Section 141.

SCHEDULE 15 U.K. Capital Gains: Re-Basing to 1982 Etc.

Postponed charges etc.: pre-1st April 1982 events U.K.

1 (1) None of the enactments specified in sub-paragraph (2) below shall applyin consequence of an event occurring on or after 6th April 1988 if itsapplication would be directly attributable to the disposal of an asset on orbefore 31st March 1982.

(2) The enactments referred to in sub-paragraph (1) above are—

(a) section 268A(4) of the Taxes Act 1970 (postponement of charge wheresecurities acquired in exchange for business acquired by non-residentcompany);

(b) section 84 of the Capital Gains Tax Act 1979 (postponement of charge orloss where gilts acquired on compulsory acquisition of shares);

(c) section 111B(3) of that Act (postponement of charge where depreciatingasset acquired on compulsory acquisition of land); and

(d) section 117(2) of that Act (postponement of charge where depreciatingasset acquired as replacement for business asset).

2 Paragraph 3(1) of Schedule 9 to the M1 Finance Act 1988(halving of charges deferred from before 6th April 1988) shall have effect,and shall be deemed always to have had effect, with the insertion of the words “and to paragraph 1 of Schedule 15 to the Finance Act 1989” after thewords “sub-paragraph (3) below”.

Marginal Citations

M1 1988 c. 39.

Reduction of 1982 value in certain cases U.K.

3 (1) Sub-paragraph (2) below applies where—

(a) subsection (2) of section 96 of the Finance Act 1988 applies in relationto the disposal of an asset,

(b) if that subsection did not apply, any of the enactments specified insub-paragraph (3) below would operate to disallow expenditure as a deductionin computing a gain accruing on the disposal, and

(c) the disallowance would be attributable to the reduction of the amount ofthe consideration for a disposal made after 31st March 1982 but before 6thApril 1988.

(2) Where this sub-paragraph applies the amount allowable as a deduction onthe disposal shall be reduced by the amount which would be disallowed ifsection 96(2) did not apply.

(3) The enactments referred to in sub-paragraph (1) above are—

(a) section 21(2) of the Capital Gains Tax Act 1979 (disallowance of allowableexpenditure where allowance already given against receipts of compensation orinsurance money);

(b) section 72(4) of that Act (disallowance where allowance already givenagainst capital distribution);

(c) section 83(4) of that Act (disallowance where allowance already givenagainst premium on conversion of securities); and

(d) section 109 of that Act (disallowance where allowance already givenagainst gain from small part disposal).

(4) This paragraph shall apply to disposals on or after 6th April 1989.

No gain/no loss disposals U.K.

4 (1) Section 68(7A) of the M2 Finance Act 1985 shall haveeffect, and shall be deemed always to have had effect—

(a) as if in paragraph (a) for “146(3)” there were substituted “146(2)or (3), 146A(2)”, and

(b) as if after paragraph (e) there were inserted—

“(ee) section 130(3) of the Transport Act 1985;”.

(2) Paragraph 1(3) of Schedule 8 to the M3 Finance Act 1988shall have effect, and shall be deemed always to have had effect, as if afterparagraph (e) there were inserted—

“(ee) section 130(3) of the Transport Act 1985;”.

Marginal Citations

M2 1985 c. 54.

M3 1988 c. 39.

Elections U.K.

5 Paragraph 13(5) of Schedule 8 to the Finance Act 1988 shall have effect,and shall be deemed always to have had effect, as if for the words “subsection (5)” there were substituted the words “subsection (6)”