Finance Act 1990

116 Amount of levy. U.K.

(1) Subject to subsection (2) below, levy shall be charged at the rate of 50 per cent. on the consideration given for the securities disposed of.

(2) Where no consideration is given for the securities disposed of, or their market value at the time of the disposal is greater than the consideration given, levy shall be charged at the rate of 50 per cent. on that market value.

(3) There shall be allowed as a deduction from the amount on which levy would otherwise be chargeable any expenditure wholly and exclusively incurred for the purposes of the disposal by the person making the disposal, being—

(a) fees, commissions or remuneration paid for professional services,

(b) costs of transfer,

(c) costs of advertising, or

(d) expenses reasonably incurred in ascertaining the market value of the securities disposed of.

(4) Where—

(a) a scheme has been effected or arrangements have been made (whether before or after a disposal) whereby the value of securities disposed of has been materially reduced, and

(b) the aim or one of the aims of the scheme or arrangements is decreasing liability to levy,

the amount on which levy would be chargeable apart from this subsection shall be increased by such amount as appears to the Secretary of State to be appropriate.

(5) The market value of securities shall be determined for the purposes of this section as it would fall to be determined in accordance with sections [F1 272(1) to (4) and 273 of the Taxation of Chargeable Gains Act 1992] for the purposes of tax on chargeable gains (but subject to section 117 below).

(6) The Treasury may substitute for the percentage for the time being specified in subsections (1) and (2) above such other percentage as they may prescribe by order made by statutory instrument.

(7) An order under subsection (6) above shall not be made unless a draft of the order has been laid before and approved by a resolution of the House of Commons.

Textual Amendments

F1 Words in s. 116(5) substituted (6.3.1992 as mentioned in s. 289 (1)(2) of the substituting Act) by Taxation of Chargeable Gains Act 1992 (c. 12), s. 290, Sch. 10 para. 22(2) (with ss. 60, 101(1), 201(3)).