Finance Act 1991

Miscellaneous

95 Housing for Wales

(1) In section 342 of the [1970 c. 10.] Income and Corporation Taxes Act 1970 (disposals of land between Housing Corporation and housing associations) and section 342A of that Act (disposals by Housing Corporation and certain housing associations) the words “or Housing for Wales” in each place where they occur (which were inserted by the [1988 c. 50.] Housing Act 1988 consequentially on the establishment of Housing for Wales) shall be omitted and those sections shall instead be amended as follows.

(2) In section 342, the words from “Where” to “that party” shall become subsection (1) and the remaining words shall become subsection (2).

(3) In subsection (2) of that section, for “In this section” there shall be substituted “In subsection (1) above”.

(4) In that section, there shall be inserted at the end—

“(3) This section shall also have effect with the substitution of the words “Housing for Wales” for the words “the Housing Corporation” and “the Corporation”, in each place where they occur.”

(5) In section 342A, after subsection (1) there shall be inserted—

“(1A) Subsection (1) above shall also have effect with the substitution of the words “Housing for Wales” for the words “the Housing Corporation” and “the Corporation”, in each place where they occur.”

(6) This section shall be deemed to have come into force on 1st December 1988.

96 Scottish Homes

(1) In section 342 of the Income and Corporation Taxes Act 1970, there shall be inserted at the end—

“(4) This section shall also have effect with the substitution of the words “Scottish Homes” for the words “the Housing Corporation” and “the Corporation”, in each place where they occur.”

(2) In section 342A of that Act, after subsection (1A) there shall be inserted—

“(1B) Subsection (1) above shall also have effect with the substitution of the words “Scottish Homes” for the words “the Housing Corporation” and “the Corporation”, in each place where they occur.”

(3) This section shall be deemed to have come into force on 1st December 1988.

97 Foreign assets: delayed remittances

(1) In section 13 of the [1979 c. 14.] Capital Gains Tax Act 1979 (foreign assets: delayed remittances) in subsection (3)(b) for “income arose” there shall be substituted “assets were situated at the time of the disposal”.

(2) This section shall apply in relation to disposals on or after 19th March 1991.

98 Corporate bonds

(1) Section 64 of the [1984 c. 43.] Finance Act 1984 shall be amended as follows.

(2) In subsection (2) (which defines “corporate bond” for the purposes of section 64 of the [1984 c. 43.] Finance Act 1984 and accordingly for the purposes of certain other enactments including, by virtue of section 64(1) of the [1979 c. 14.] Capital Gains Tax Act 1979, that Act), in paragraph (b) the words from “as defined” to “1973” shall be omitted.

(3) After that subsection there shall be inserted—

“(2A) In subsection (2)(b) above “normal commercial loan” has the meaning which would be given by sub-paragraph (5) of paragraph 1 of Schedule 18 to the Taxes Act 1988 if for paragraph (a)(i) to (iii) of that sub-paragraph there were substituted the words “corporate bonds (within the meaning of section 64 of the Finance Act 1984)”.”

(4) This section shall have effect—

(a) so far as concerns the application of section 64 for the purposes of section 136A of the Capital Gains Tax Act 1979, in relation to claims on or after 19th March 1991, and

(b) so far as concerns any other application of section 64, in relation to disposals on or after that date (and, in relation to such disposals, shall be regarded as always having had effect).

99 Indexation

(1) In section 68 of the [1985 c. 54.] Finance Act 1985 (modification of indexation allowance) in subsection (7A) there shall be added after paragraph (h) the words “; and

(i) paragraph 2(1) of Schedule 12 to the [1990 c. 29.] Finance Act 1990.”

(2) In Schedule 19 to the Finance Act 1985 (indexation) in paragraph 16(3) after “under” there shall be inserted “Chapter II of Part IV of the [1981 c. 35.] Finance Act 1981 or”.

(3) Subsection (1) above shall be deemed to have come into force on 26th July 1990.

(4) Subsection (2) above shall apply in relation to disposals on or after 19th March 1991.

100 Relief on certain business etc. disposals by persons over 55 or who retire under that age for ill health

(1) Sections 69 and 70 of, and Schedule 20 to, the [1985 c. 54.] Finance Act 1985 (which give relief on certain disposals by persons over 60 or who retire under that age on grounds of ill health) shall be amended in accordance with the following provisions of this section.

(2) The words “the age of 55” shall be substituted for the words “the age of 60” wherever occurring in—

(a) section 69(1)(a) and (b), (4)(b) and (6)(b);

(b) section 70(1)(a) and (b), (2)(c), (4)(c) and (5)(c); and

(c) paragraph 5(2) and (4) of Schedule 20.

(3) In paragraph 13(1) of Schedule 20—

(a) in paragraph (a) (full relief up to the appropriate percentage of £125,000) for “£125,000” there shall be substituted “£150,000”; and

(b) in paragraph (b) (half relief on the excess, up to the appropriate percentage of £500,000) for “£125,000” and “£500,000” there shall be substituted “£150,000” and “£600,000” respectively.

(4) The amendments made by this section shall apply in relation to disposals on or after 19th March 1991.

101 Amendments of rebasing provisions

(1) Schedule 9 to the [1988 c. 39.] Finance Act 1988 (deferred charges on gains before 31st March 1982) shall be amended as follows.

(2) In paragraph 1(b) (reduction of gain) after “within paragraph” there shall be inserted “2A or”.

(3) In sub-paragraph (1) of paragraph 2 (charges rolled-over or held-over) for “sub-paragraph (2)” there shall be substituted “sub-paragraphs (2) to (2B)”.

(4) After sub-paragraph (2) of that paragraph there shall be inserted—

“(2A) Where the disposal takes place on or after 19th March 1991, this Schedule does not apply if the amount of the deduction would have been less had relief by virtue of a previous application of this Schedule been duly claimed.

(2B) Where—

(a) the asset was acquired on or after 19th March 1991,

(b) the deduction is partly attributable to a claim by virtue of section 117(3) of the [1979 c. 14.] Capital Gains Tax Act 1979 (roll-over into non-depreciating asset instead of into depreciating asset), and

(c) the claim applies to the asset,

this Schedule does not apply by virtue of this paragraph.”

(5) After paragraph 2 there shall be inserted—

“2A(1) This paragraph applies where this Schedule would have applied on a disposal but for paragraph 2(2B) above.

(2) This Schedule applies on the disposal if paragraph 3 below would have applied had—

(a) section 117(2) of the [1979 c. 14.] Capital Gains Tax Act 1979 (postponement of charge where depreciating asset acquired as replacement for business asset) continued to apply to the gain carried forward as a result of the claim by virtue of section 117(3) of that Act, and

(b) the time of the disposal been the time when that gain was treated as accruing by virtue of section 117(2) of that Act.”

(6) In sub-paragraph (1) of paragraph 3 (postponed charges) for “sub-paragraph (3)” there shall be substituted “sub-paragraphs (3) and (4)”.

(7) In sub-paragraph (2)(e) of that paragraph the words from “(postponement” to “asset)” shall be omitted.

(8) After sub-paragraph (3) of that paragraph there shall be inserted—

“(4) Where a gain is treated as accruing in consequence of an event occurring on or after 19th March 1991, this Schedule does not apply if—

(a) the gain is attributable (whether directly or indirectly and whether in whole or part) to the disposal of an asset on or after 6th April 1988, or

(b) the amount of the gain would have been less had relief by virtue of a previous application of this Schedule been duly claimed.”

(9) In sub-paragraph (1)(a) of paragraph 8 for “which ends when” there shall be substituted “in which”.

(10) Subsection (9) above shall apply in relation to claims made on or after 19th March 1991.

102 Traded options: closing purchases

(1) This section applies where, on or after the day on which this Act is passed, a person (“the grantor”) who has granted a traded option (“the original option”) closes it out by acquiring a traded option of the same description (“the second option”).

(2) Any disposal by the grantor involved in closing out the original option shall be disregarded for the purposes of capital gains tax or, as the case may be, corporation tax on chargeable gains.

(3) The incidental costs to the grantor of making the disposal constituted by the grant of the original option shall be treated for the purposes of Chapter II of Part II of the Capital Gains Tax Act 1979 (computation of gains and losses) as increased by an amount equal to the aggregate of—

(a) the amount or value of the consideration, in money or money’s worth, given by him or on his behalf wholly and exclusively for the acquisition of the second option, and

(b) the incidental costs to him of that acquisition.

(4) In this section “traded option” has the meaning given by section 137(9)(b) of the [1979 c. 14.] Capital Gains Tax Act 1979.