Finance Act 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.