Taxation of Chargeable Gains Act 1992
Part I Capital gains tax and corporation tax on chargeable gains
General
1 The charge to tax.
Capital gains tax
2 Persons and gains chargeable to capital gains tax, and allowable losses.
2A Taper relief.
3 Annual exempt amount.
3AReporting limits
4Rates of capital gains tax
4ASection 4: special cases
4BDeduction of losses etc in most beneficial way
5 Accumulation and discretionary settlements.
6 Other special cases.
7 Time for payment of tax.
Corporation tax
8 Company’s total profits to include chargeable gains.
Residence etc.
9 Residence, including temporary residence.
10 Non-resident with United Kingdom branch or agency.
10A Temporary non-residents.
10BNon-resident company with United Kingdom permanent establishment
11Visiting forces and official agents
12Non-UK domiciled individuals to whom remittance basis applies
13 Attribution of gains to members of non-resident companies.
14 Non-resident groups of companies.
14ASection 13: non-UK domiciled individuals
Part II General Provisions relating to computation of gains and acquisitions and disposals of assets
Chapter I Introductory
15 Computation of gains.
16 Computation of losses.
16ZALosses: non-UK domiciled individuals
16ZBIndividual who has made election under section 16ZA: foreign chargeable gains remitted in tax year after tax year in which accrue
16ZCIndividual who has made election under section 16ZA and to whom remittance basis applies
16ZDSection 16ZC: supplementary
16ARestrictions on allowable losses
17 Disposals and acquisitions treated as made at market value.
18 Transactions between connected persons.
19 Deemed consideration in certain cases where assets disposed of in a series of transactions.
20 Original market value and aggregate market value for purposes of section 19.
Chapter II Assets and disposals of assets
General provisions
21 Assets and disposals.
22 Disposal where capital sums derived from assets.
23 Receipt of compensation and insurance money not treated as a disposal.
24 Disposals where assets lost or destroyed, or become of negligible value.
25 Non-residents: deemed disposals.
25ALong funding leases of plant or machinery: deemed disposals
26 Mortgages and charges not to be treated as disposals.
26ATransfer of dormant bank or building society account
27 Disposals in cases of hire-purchase and similar transactions.
28 Time of disposal and acquisition where asset disposed of under contract.
Value shifting
29 General provisions.
30 Tax-free benefits.
31Disposal of shares or securities by a company
Chapter III Computation of gains: General provisions
Re-basing to 1982, and assets held on 6th April 1965
35 Assets held on 31st March 1982 (including assets held on 6th April 1965).
35ADisposal of asset acquired on no gain/no loss disposal
36 Deferred charges on gains before 31st March 1982.
Allowable deductions
37 Consideration chargeable to tax on income.
37AConsideration on disposal of certain leases
38 Acquisition and disposal costs etc.
39 Exclusion of expenditure by reference to tax on income.
40 Interest charged to capital.
41 Restriction of losses by reference to capital allowances and renewals allowances.
41ARestriction of losses: long funding leases of plant or machinery
42 Part disposals.
43 Assets derived from other assets.
Wasting assets
44 Meaning of “wasting asset".
45 Exemption for certain wasting assets.
46 Straightline restriction of allowable expenditure.
47 Wasting assets qualifying for capital allowances.
Miscellaneous provisions
48 Consideration due after time of disposal.
49 Contingent liabilities.
50 Expenditure reimbursed out of public money.
51 Exemption for winnings and damages etc.
52 Supplemental.
Chapter IV Computation of gains: the indexation allowance
General
52AChapter to apply only for corporation tax purposes
53 The indexation allowance and interpretative provisions.
54 Calculation of indexation allowance.
55 Assets owned on 31st March 1982 or acquired on a no gain/no loss disposal.
56 Part disposals and disposals on a no-gain/no-loss basis.
57 Receipts etc. which are not treated as disposals but affect relevant allowable expenditure.
Part III Individuals, partnerships, trusts and collective investment schemes etc
Chapter I Miscellaneous provisions
58 Spouses and civil partners.
59 Partnerships.
59A Limited liability partnerships.
60 Nominees and bare trustees.
61 Funds in court.
62 Death: general provisions.
63 Death: application of law in Scotland.
63ADeath: application of law in Northern Ireland
64 Expenses in administration of estates and trusts.
65 Liability for tax of trustees or personal representatives.
66 Insolvents’ assets.
67 Provisions applicable where section 79 of the Finance Act 1980 has applied.
Chapter II Settlements
General provisions
68 Meaning of “settled property".
68AMeaning of “settlor”
68BTransfer between settlements: identification of settlor
68CVariation of will or intestacy, etc: identification of settlor
69 Trustees of settlements.
69ASub-fund settlements
70 Transfers into settlement.
71 Person becoming absolutely entitled to settled property.
72 Termination of life interest on death of person entitled.
73 Death of life tenant: exclusion of chargeable gain.
74 Effect on sections 72 and 73 of relief under section 165 or 260.
75 Death of annuitant.
76 Disposal of interests in settled property.
76A Disposal of interest in settled property: deemed disposal of underlying assets.
76B Transfers of value by trustees linked with trustee borrowing.
77 Charge on settlor with interest in settlement.
78 Right of recovery.
79 Provisions supplemental to sections 77 and 78.
79A Restriction on set-off of trust losses.
79B Attribution to trustees of gains of non-resident companies.
Migration of settlements, non-resident settlements and dual resident settlements
80 Trustees ceasing to be resident in U.K.
81 Death of trustee: special rules.
82 Past trustees: liability for tax.
83 Trustees ceasing to be liable to U.K. tax.
83ATrustees both resident and non-resident in a year of assessment
84 Acquisition by dual resident trustees.
85 Disposal of interests in non-resident settlements.
85ATransfers of value: attribution of gains to beneficiaries and treatment of losses
86 Attribution of gains to settlors with interest in non-resident or dual resident settlements.
86A Attribution of gains to settlor in section 10A cases.
87Non-UK resident settlements: attribution of gains to beneficiaries
87ASection 87: matching
87BSection 87: remittance basis
87CSections 87 and 87A: disregard of certain capital payments
88 Gains of dual resident settlements.
89 Migrant settlements etc.
90Sections 87 and 89(2): transfers between settlements
90ASection 90: transfers made for consideration in money or money's worth
91 Increase in tax payable under section 87 or 89(2).
92 Qualifying amounts and matching.
93 Matching: special cases.
94 Transfers of settled property where qualifying amounts not wholly matched.
95 Matching after transfer.
96 Payments by and to companies.
97 Supplementary provisions.
98 Power to obtain information for purposes of sections 87 to 90.
98A Settlements with foreign element: information.
Chapter III Collective investment schemes and investment trusts etc
99 Application of Act to unit trust schemes.
99ATreatment of umbrella schemes
99BCalculation of the disposal cost of accumulation units
100 Exemption for authorised unit trusts etc.
101 Transfer of company’s assets to investment trust.
101A Transfer within group to investment trust.
101B Transfer of company’s assets to venture capital trust.
101C Transfer within group to venture capital trust.
102 Collective investment schemes with property divided into separate parts.
103 Restriction on availability of indexation allowance.
103AApplication of Act to certain offshore funds
103BApplication of section 99B to transparent funds
103CPower to make regulations about collective investment schemes
103DCo-ownership schemes
Chapter 4Collective investment schemes: exchanges, mergers and schemes of reconstruction
103EApplication of Chapter
103FExchanges of units for units in the same scheme
103GExchange of units for those in another collective investment scheme
103HScheme of reconstruction involving issue of units
103IScheme of reconstruction involving conversion scheme
103JSupplementary provisions
103KRestriction on application of sections 103G, 103H and 103I
Part IV Shares, securities, options etc.
Chapter I General
Share pooling, identification of securities, and indexation
104 Share pooling: general interpretative provisions.
105 Disposal on or before day of acquisition of shares and other unidentified assets.
105A Shares acquired on same day: election for alternative treatment
105B Provision supplementary to section 105A
106 Disposal of shares and securities by company within prescribed period of acquisition.
106A Identification of securities: ... capital gains tax.
107 Identification of securities etc: general rules for corporation tax.
108 Identification of relevant securities for corporation tax.
109 Corporation tax: pre-April 1982 share pools.
110 Indexation for section 104 holdings for corporation tax.
110A Indexation for section 104 holdings: capital gains tax.
111 Indexation: building society etc. shares.
112 Parallel pooling regulations: corporation tax.
113 Calls on shares: corporation tax.
114 Consideration for options: corporation tax.
Gilt-edged securities and qualifying corporate bonds
115 Exemptions for gilt-edged securities and qualifying corporate bonds etc.
116 Reorganisations, conversions and reconstructions.
116AHolding beginning or ceasing to fall within section 490 of CTA 2009
116BShares beginning or ceasing to be shares to which section 521B of CTA 2009 applies
117 Meaning of “qualifying corporate bond".
117A Assets that are not qualifying corporate bonds for corporation tax purposes.
117B Holdings in unit trusts and offshore funds excluded from treatment as qualifying corporate bonds.
Deep discount securities, the accrued income scheme etc.
118 Amount to be treated as consideration on disposal of deep discount securities etc.
119 Transfers of securities subject to the accrued income scheme.
119AIncrease in expenditure by reference to tax charged in relation to employment-related securities
119BSection 119A: unremitted foreign securities income
119CSection 119A: unremitted Part 7A income
120 Increase in expenditure by reference to tax charged in relation to shares etc.
Savings certificates etc.
121 Exemption for government non-marketable securities.
Capital distribution in respect of shares etc.
122 Distribution which is not a new holding within Chapter II.
123 Disposal of right to acquire shares or debentures.
Close companies
124 Disposal of shares: relief in respect of income tax consequent on shortfall in distributions.
125 Shares in close company transferring assets at an undervalue.
Share loss relief
125AEffect of share loss relief
Chapter II Reorganisation of share capital, conversion of securities etc.
Reorganisation or reduction of share capital
126 Application of sections 127 to 131.
127 Equation of original shares and new holding.
128 Consideration given or received by holder.
129 Part disposal of new holding.
130 Composite new holdings.
131 Indexation allowance.
Conversion of securities
132 Equation of converted securities and new holding.
133 Premiums on conversion of securities.
134 Compensation stock.
Company reconstructions ...
135Exchange of securities for those in another company
136Scheme of reconstruction involving issue of securities
137 Restriction on application of sections 135 and 136.
138 Procedure for clearance in advance.
138A Use of earn-out rights for exchange of securities.
139 Reconstruction ... involving transfer of business.
140 Postponement of charge on transfer of assets to non-resident company.
Transfers concerning companies of different member States
140ATransfer or division of UK business
140B Section 140A: anti-avoidance.
140CTransfer or division of non-UK business
140DSection 140C: anti-avoidance.
140DASecurities issued on division of business
Mergers within European Community
140EMerger leaving assets within UK tax charge
140FMerger: assets outside UK tax charge
140GTreatment of securities issued on merger
140GADisapplication of sections 24 and 122 where subsidiary merges with its parent
Transparent entities: disapplication of reliefs related to Mergers Directive
140HShare exchanges
140IDivision of business or transfer of assets
140JMergers
140KTransparent entities: taxation after merger, &c
140LInterpretation
Chapter III Miscellaneous provisions relating to commodities, futures, options and other securities
142Capital gains on stock dividends.
142AREITs: chargeable gains on stock dividends
143 Commodity and financial futures and qualifying options.
144 Options and forfeited deposits.
144ZAApplication of market value rule in case of exercise of option
144ZBException to rule in section 144ZA
144ZCSection 144ZB: non-commercial exercise of option
144ZDSection 144ZB: alteration of value to obtain tax advantage
144A Cash-settled options.
145 Call options: indexation allowance.
146 Options: application of rules as to wasting assets.
147 Quoted options treated as part of new holdings.
148 Traded options: closing purchases.
148AFutures and options involving guaranteed returns
148BDeemed disposals at a gain under section 564(4) of ITTOIA 2005
148CDeemed disposals at a loss under section 564(4) of ITTOIA 2005
149 Rights to acquire qualifying shares.
149AEmployment-related securities options
149AARestricted and convertible employment-related securities
149ABShares in research institution spin-out companies
149B Employee incentive schemes: conditional interests in shares.
149CPriority share allocations
150 Business expansion schemes.
150A Enterprise investment scheme.
150B Enterprise investment scheme: reduction of EIS relief.
150C Enterprise investment scheme: re-investment.
150D Enterprise investment scheme: application of taper relief
150ESeed enterprise investment scheme
150FSeed enterprise investment scheme: reduction of relief
150GSeed enterprise investment scheme: re-investment
151 Personal equity plans.
151A Venture capital trusts: reliefs.
151B Venture capital trusts: supplementary.
151BACITR: identification of securities or shares on a disposal
151BBCITR: rights issues etc
151BCCITR: company reconstructions etc
151CStrips: manipulation of price: associated payment giving rise to loss
151DCorporate strips: manipulation of price: associated payment giving rise to loss
151EExchange gains and losses from loan relationships: regulations
151FTreatment of alternative finance arrangements
151GRegulations where non-qualifying shares conditions altered
Chapter 4Alternative finance arrangements
Introduction
151HIntroduction
151I Meaning of “financial institution”
Arrangements that are alternative finance arrangements
151JPurchase and resale arrangements
151K Diminishing shared ownership arrangements
151L Deposit arrangements
151M Profit share agency arrangements
151N Investment bond arrangements
151O Provision not at arm's length: exclusion of arrangements from sections 151J to 151N
Meaning of “alternative finance return”
151PPurchase and resale arrangements
151Q Purchase and resale arrangements where return in foreign currency
151R Diminishing shared ownership arrangements
151S Other arrangements
Special rules for investment bond arrangements
151TInvestment bond arrangements are qualifying corporate bonds
151U Treatment of bond-holder and bond-issuer
151V Treatment as securities
151W Investment bond arrangements not unit trust scheme or offshore fund
Other rules
151XExclusion of some alternative finance return from sale consideration
151Y Diminishing shared ownership arrangements not partnerships
Part V Transfer of business assets
Chapter I General provisions
Replacement of business assets
152 Roll-over relief.
153 Assets only partly replaced.
153A Provisional application of sections 152 and 153.
154 New assets which are depreciating assets.
155 Relevant classes of assets.
156 Assets of Class 1.
156ZAIntangible fixed assets: roll-over relief
156ZBIntangible fixed assets: interaction with relief under Chapter 7 of Part 8 of CTA 2009
156A Cessation of trade by limited liability partnership.
157 Trade carried on by family company: business assets dealt with by individual.
158 Activities other than trades, and interpretation.
159 Non-residents: roll-over relief.
160 Dual resident companies: roll-over relief.
Stock in trade
161 Appropriations to and from stock.
Transfer of business to a company
162 Roll-over relief on transfer of business.
162A Election for section 162 not to apply
Retirement relief
163 Relief for disposals by individuals on retirement from family business.
164 Other retirement relief.
Chapter IA Roll-over relief on re-investment
164A Relief on re-investment for individuals.
164BRoll-over relief on re-investment by trustees.
164BA Interaction with retirement relief
164C Restriction applying to retirement relief and roll-over relief on re-investment.
164D Relief carried forward into replacement shares.
164E Application of Chapter in cases of an exchange of shares.
164F Failure of conditions of relief.
164FA Loss of relief in cases where shares acquired on being issued.
164FF Qualifying investment acquired from husband or wife.
164FG Multiple claims.
164G Meaning of “qualifying company".
164H Property companies etc. not to be qualifying companies.
164I Qualifying trades.
164J Provisions supplementary to section 164I.
164K Foreign residents.
164L Anti-avoidance provisions.
164M Exclusion of double relief.
164MA Exclusion of double relief
164N Interpretation of Chapter IA.
Chapter II Gifts of business assets
165 Relief for gifts of business assets.
165AMeaning of “holding company”, “trading company” and “trading group”
166 Gifts to non-residents.
167 Gifts to foreign-controlled companies.
168 Emigration of donee.
169 Gifts into dual resident trusts.
169A Cessation of trade by limited liability partnership
169BGifts to settlor-interested settlements etc
169CClawback of relief if settlement becomes settlor-interested etc
169DExceptions to sections 169B and 169C
169EMeaning of “settlor” in sections 169B to 169D and 169G
169FMeaning of “interest in a settlement” in sections 169B to 169D
169GMeaning of “arrangement” in sections 169B to 169E and information power
Chapter 3Entrepreneurs’ relief
169HIntroduction
169IMaterial disposal of business assets
169JDisposal of trust business assets
169KDisposal associated with relevant material disposal
169LRelevant business assets
169MRelief to be claimed
169NAmount of relief: general
169OAmount of relief: special provisions for certain trust disposals
169PAmount of relief: special provision for certain associated disposals
169QReorganisations: disapplication of section 127
169RReorganisations involving acquisition of qualifying corporate bonds
169SInterpretation of Chapter
Part VI Companies, oil, insurance etc.
Chapter I Companies
Groups of companies
170 Interpretation of sections 171 to 181.
Transactions within groups
171 Transfers within a group: general provisions.
171A Election to reallocate gain or loss to another member of the group
171BElection under section 171A: effect
171CElections under section 171A: insurance companies
172 Transfer of United Kingdom branch or agency.
173 Transfers within a group: trading stock.
174 Disposal or acquisition outside a group.
175 Replacement of business assets by members of a group.
Losses attributable to depreciatory transactions
176 Depreciatory transactions within a group.
177 Dividend stripping.
177ARestriction on set-off of pre-entry losses.
Pre-entry gains
177B Restrictions on setting losses against pre-entry gains.
Companies leaving groups
178 Company ceasing to be member of group: pre-appointed day cases.
179 Company ceasing to be member of group: post-appointed day cases.
179ZAClaim for adjustment of calculations under section 179
179A Reallocation within group of gain or loss accruing under section 179
179B Roll-over of degrouping charge on business assets
180 Transitional provisions.
181 Exemption from charge under 178 or 179 in the case of certain mergers.
Restriction on indexation allowance for groups and associated companies
182 Disposals of debts.
183 Disposals of shares.
184 Definitions and other provisions supplemental to sections 182 and 183.
Restrictions on buying losses or gains etc
184ARestrictions on buying losses: tax avoidance schemes
184BRestrictions on buying gains: tax avoidance schemes
184CSections 184A and 184B: meaning of “qualifying change of ownership”
184DSections 184A and 184B: meaning of “tax advantage”
184ESections 184A and 184B: “pre-change assets”: basic rules
184FSections 184A and 184B: “pre-change assets”: pooling rules
184GAvoidance involving losses: schemes converting income to capital
184HAvoidance involving losses: schemes securing deductions
184INotices under sections 184G and 184H
Non-resident and dual resident companies
185 Deemed disposal of assets on company ceasing to be resident in U.K.
186 Deemed disposal of assets on company ceasing to be liable to U.K. taxation.
187 Postponement of charge on deemed disposal under section 185 or 186.
188 Dual resident companies: deemed disposal of certain assets.
Recovery of tax otherwise than from tax-payer company
189 Capital distribution of chargeable gains: recovery of tax from shareholder.
190 Tax recoverable from another group company or controlling director.
Demergers
192 Tax exempt distributions.
Disposals by companies with substantial shareholding
192A Exemptions for gains or losses on disposal of shares etc
Chapter II Oil and mining industries
Oil exploration and exploitation
193 Roll-over relief not available for gains on oil licences.
194 Disposals of oil licences relating to undeveloped areas.
195 Allowance of certain drilling expenditure etc.
195AOil licence swaps
195BLicence-consideration swap
195CCompany that receives mixed consideration: N exceeds C
195DCompany that receives mixed consideration: N does not exceed C
195ECompany that gives mixed consideration
195FReimbursed expenditure
196 Interpretation of sections 194 to 195F .
197 Disposals of interests in oil fields etc: ring fence provisions.
198 Replacement of business assets used in connection with oil fields.
198ARing fence reinvestment: whole consideration reinvested
198BRing fence reinvestment: part of consideration reinvested
198CProvisional application of sections 198A and 198B
198DNo double claims
198ERing fence reinvestments and disposal consideration
198FQualification for roll-over relief
198GQualification for section 153 relief
198HAcquisition by member of same group
198IExploration, appraisal and development expenditure
199 Exploration or exploitation assets: deemed disposals
200 Limitation of losses on disposal of oil industry assets held on 31st March 1982.
Mineral leases
201 Royalties.
202 Capital losses.
203 Provisions supplementary to section 202 .
Chapter III Insurance
204Policies of insurance and non-deferred annuities
205 Disallowance of insurance premiums as expenses.
206 Underwriters.
207 Disposal of assets in premiums trust fund
208 Premiums trust funds: indexation.
209 Interpretation, regulations about underwriters
210Life assurance and deferred annuities.
210ARing-fencing of losses
210BDisposal and acquisition of section 119 or 120 securities
210CLosses on disposal of authorised investment fund assets to connected manager
211 Transfers of business.
211ZATransfers of business: transfer of unused losses
211A Gains of insurance company from venture capital investment partnership
211BTransfers of assets to certain collective investment schemes
212 Annual deemed disposal of holdings of unit trusts etc.
213 Spreading of gains and losses under section 212.
213APower to modify ss. 212 and 213 etc in case of CFCs that are offshore funds
214 Transitional provisions.
214AFurther transitional provisions.
214BModification of Act in relation to overseas life insurance companies.
214BAInterpretation
Chapter IV Miscellaneous cases
...
214C Gains not eligible for taper relief.
Building societies etc.
215 Disposal of assets on amalgamation of building societies etc.
216 Assets transferred from society to company.
217 Shares, and rights to shares, in successor company.
Friendly societies
217ATransfer of assets on incorporation of registered friendly society.
217BRights of members in registered society equated with rights in incorporated society.
217CSubsequent disposal of assets by incorporated society etc.
Industrial and provident societies and co-operatives
217DDisposal of assets on union, amalgamation or transfer of engagements
The Regulator of Social Housing, the Secretary of State and housing associations
218 Disposals of land between the Regulator of Social Housing, the Secretary of State or Scottish Homes and housing associations.
219Disposals by housing related bodies.
220 Disposals by Northern Ireland housing associations.
Other bodies
221 Harbour authorities.
Part VII Other property, businesses, investments etc.
Private residences
222 Relief on disposal of private residence.
223 Amount of relief.
224 Amount of relief: further provisions.
225 Private residence occupied under terms of settlement.
225APrivate residence held by personal representatives
225BDisposals in connection with divorce, etc
225CSale of private residence under certain agreements with employer, etc
225DPrivate residence of adult placement carer
226 Private residence occupied by dependent relative before 6th April 1988.
226APrivate residence relief: cases where relief obtained under section 260
226BException to section 226A
Employee share ownership trusts
227 Conditions for roll-over relief.
228 Conditions for relief: supplementary.
229 The relief.
230 Dwelling-houses: special provision.
231 Shares: special provision.
232 Chargeable event when replacement assets owned.
233 Chargeable event when replacement property owned.
234 Chargeable events when bonds owned.
235 Information.
236 Prevention of double charge.
Share incentive plans
236ARelief for transfers to share incentive plans
Superannuation funds, profit sharing schemes, employee trusts etc.
237 Superannuation funds, annuities and annual payments.
237A Share option schemes: release and replacement of options.
238 Approved profit sharing and share option schemes.
238AApproved share schemes and share incentives
239Disposals to trustees of employee trusts
239ZARelief for disposals by trustees of employee trusts
Registered pension schemes
239ADe-registration of registered pension schemes
Leases
240 Leases of land and other assets.
241 UK furnished holiday lettings.
241A EEA furnished holiday lettings
Part disposals
242 Small part disposals.
243 Part disposal to authority with compulsory powers.
244 Part disposal: consideration exceeding allowable expenditure.
Compulsory acquisition
245 Compensation paid on compulsory acquisition.
246 Time of disposal and acquisition.
247 Roll-over relief on compulsory acquisition.
247A Provisional application of section 247.
248 Provisions supplementary to section 247.
Joint interests in land
248ARoll-over relief on disposal of joint interests in land: conditions
248BCalculation of relief
248CExcluded land
248DMilk quotas
248ERelief on disposal of joint interests in private residence
Woodlands
249 Grants for giving up agricultural land.
250 Woodlands.
Debts
251 General provisions.
252 Foreign currency bank accounts.
252AForeign currency bank accounts and the remittance basis
253 Relief for loans to traders.
254 Relief for debts on qualifying corporate bonds.
255 Provisions supplementary to section 254.
Charities and gifts of non-business assets etc.
256 Charities.
256AAttributing gains to the non-exempt amount: charitable trusts
256BHow gains are attributed to the non-exempt amount: charitable trusts
256CAttributing gains to the non-exempt amount: charitable companies
256DHow gains are attributed to the non-exempt amount: charitable companies
257 Gifts to charities etc.
257ATainted charity donations
258 Works of art etc.
259 Gifts to housing associations.
260 Gifts on which inheritance tax is chargeable etc.
261 Section 260 relief: gifts to non-residents.
Know-how
261ADisposal of know-how as part of disposal of all or part of a trade
Deduction of trading losses or post-cessation expenditure etc
261BTreating trade loss etc as CGT loss
261CMeaning of “the maximum amount” for purposes of section 261B
261DTreating excess post-cessation trade or property relief as CGT loss
261EMeaning of “the maximum amount” for purposes of section 261D
Repurchase price under repos
261FDeemed manufactured payments: effect on repurchase price
261GPrice differences under repos: effect on repurchase price
261HPower to modify section 261G in non-arm's length case
Miscellaneous reliefs and exemptions
262 Chattel exemption.
263 Passenger vehicles.
263AZARenewables obligation certificates for domestic microgeneration
263ZAFormer employees: employment-related liabilities
263A Agreements for sale and repurchase of securities: capital gains tax
263B Stock lending arrangements.
263C Stock lending involving redemption.
263CAStock lending: insolvency etc of borrower
263DGains accruing to persons paying manufactured dividends
263EStructured finance arrangements
263FPower to modify repo provisions: non-standard repo cases
263GPower to modify repo provisions: redemption arrangements
263HSections 263F and 263G: supplementary provisions
263IPowers about manufactured overseas dividends
264 Relief for local constituency associations of political parties on reorganisation of constituencies.
265 Designated international organisations.
266 Inter-American Development Bank.
267 Sharing of transmission facilities.
268 Decorations for valour or gallant conduct.
268AVictims of National-Socialist persecution
268BCompensation for deprivation of foreign assets
269 Foreign currency for personal expenditure.
270 Chevening Estate.
271 Other miscellaneous exemptions.
Part 7AUK representatives of non-UK residents
Chapter 1Treatment of branch or agency as UK representative of non-UK resident
Introduction
271AOverview of Chapter
Branches and agencies
271BBranch or agency treated as UK representative
271CTrade or profession carried on in partnership
271DInterpretation of Chapter
Chapter 2Capital gains tax obligations and liabilities imposed on UK representatives
271EIntroduction to Chapter
271FObligations and liabilities of UK representative
271GExceptions: notices and information
271HExceptions: criminal offences and penalties etc
271IIndemnities
271JMeaning of “non-UK resident” and “independent agent”
Part VIII Supplemental
272 Valuation: general.
273 Unquoted shares and securities.
274 Value determined for inheritance tax.
275 Location of assets.
275ALocation of certain intangible assets
275BSection 275A: supplementary provisions
275CLocation of assets: interests of co-owners
276 The territorial sea and the continental shelf.
276ANo gain/no loss: foreign permanent establishment exemption
277 Double taxation relief.
278 Allowance for foreign tax.
279 Foreign assets: delayed remittances.
279ADeferred unascertainable consideration: election for treatment of loss
279BProvisions supplementary to section 279A
279CEffect of election under section 279A
279DElections under section 279A
280 Consideration payable by instalments.
281 Payment by instalments of tax on gifts.
282 Recovery of tax from donee.
283 Repayment supplements.
284 Income tax decisions.
284A Concessions that defer a charge.
284B Provisions supplementary to section 284A.
285 Recognised investment exchanges.
285AEuropean Economic Interest Groupings
286 Connected persons: interpretation.
286AResidence of companies
287 Orders and regulations made by the Treasury or the Board.
288 Interpretation.
289 Commencement.
290 Savings, transitionals, consequential amendments and repeals.
291 Short title.
SCHEDULES
SCHEDULE A1 Application of taper relief
Introductory
1. . . . . . . . . ....
Period for which an asset is held and relevant period of ownership
2. . . . . . . . . ....
Rules for determining whether a gain is a gain on the disposal of a business asset or non-business asset
3. . . . . . . . . ....
Conditions for shares to qualify as business assets
4. . . . . . . . . ....
Conditions for other assets to qualify as business assets
5. . . . . . . . . ....
Companies which are qualifying companies
6. . . . . . . . . ....
Meaning of “material interest”
6A. . . . . . . . . ....
Persons who are eligible beneficiaries
7. . . . . . . . . ....
Cases where there are non-qualifying beneficiaries
8. . . . . . . . . ....
Cases where an asset is used at the same time for different purposes
9. . . . . . . . . ....
Periods of limited exposure to fluctuations in value not to count
10. . . . . . . . . ....
Periods of share ownership not to count where there is a change of activity by the company
11. . . . . . . . . ....
Periods of share ownership not to count if company is not active
11A. . . . . . . . . ....
Periods of share ownership not to count in a case of value shifting
12. . . . . . . . . ....
Rules for options
13. . . . . . . . . ....
Further rules for assets derived from other assets
14. . . . . . . . . ....
Special rules for assets transferred between spouses or civil partners
15. . . . . . . . . ....
Special rules for postponed gains
16. . . . . . . . . ....
Special rule for property settled by a company
17. . . . . . . . . ....
Special rules for assets acquired in the reconstruction of mutual businesses et ceteralaetc.
18. . . . . . . . . ....
Special rule for ancillary trust funds
19. . . . . . . . . ....
General rules for settlements
20. . . . . . . . . ....
General rule for apportionments under this Schedule
21. . . . . . . . . ....
Interpretation of Schedule
22. . . . . . . . . ....
Meaning of “trading company”
22A. . . . . . . . . ....
Meaning of “trading group”
22B. . . . . . . . . ....
Qualifying shareholdings in joint venture companies
23. . . . . . . . . ....
Joint enterprise companies: relevant connection
24. . . . . . . . . ....
SCHEDULE 1 Application of exempt amount and reporting limits in cases involving settled property
A1(1) In determining the exempt amount available to the trustees...
1(1) For any year of assessment during the whole or...
2(1) For any year of assessment during the whole or...
3(1) The exempt amount available in relation to a year...
SCHEDULE 2 Assets held on 6th April 1965
Part I Quoted securities
Deemed acquisition at 6th April 1965 value
1(1) This paragraph applies— (a) to shares and securities which...
Restriction of gain or loss by reference to actual cost
2(1) Subject to paragraph 4 below and section 109(4), paragraph...
3(1) Where— (a) a disposal was made out of quoted...
Election for pooling
4(1) This paragraph applies in relation to quoted securities as...
Election by principal company of group
5(1) In the case of companies which at the relevant...
Pooling at value on 6th April 1965: exchange of securities etc.
6(1) Where a person who has made only one of...
Underwriters
7No election under paragraph 4 above shall cover quoted securities...
Interpretation of paragraphs 3 to 7
8(1) In paragraphs 3 to 7 above— “quoted securities” means...
Part II Land reflecting development value
9(1) Subject to paragraph 17(2) of Schedule 11, this Part...
10(1) For the purposes of this Part of this Schedule,...
11(1) The current use value of an interest in land...
12In computing any gain accruing to a person on a...
13(1) In this Part of this Schedule, “material development”, in...
14(1) For the purposes of this Part, material development shall...
15In this Part of this Schedule, unless the context otherwise...
Part III Other assets
Apportionment by reference to straightline growth of gain or loss over period of ownership
16(1) This paragraph applies subject to Parts I and II...
Election for valuation at 6th April 1965
17(1) If the person making a disposal so elects, paragraph...
Unquoted shares, commodities etc.
18(1) This paragraph has effect as respects shares held by...
Reorganisation of share capital, conversion of securities etc.
19(1) For the purposes of this Act, it shall be...
Part IV Miscellaneous
Capital allowances
20If under any provision in this Schedule it is to...
Assets transferred to close companies
21(1) This paragraph has effect where— (a) at any time,...
Spouses and civil partners
22. . . . . . . . . ....
Compensation and insurance money
23Where section 23(4)(a) applies to exclude a gain which, in...
SCHEDULE 3 Assets held on 31st March 1982
Previous no gain/no loss disposals
1(1) For the purposes of corporation tax, where—
1A(1) This paragraph applies where— (a) paragraph 1(1) applies to...
2(1) Sub-paragraph (2) below applies where a person makes a...
Capital allowances
3If under section 35 it is to be assumed that...
Part disposals etc.
4(1) Where, in relation to a disposal to which section...
Assets derived from other assets
5Section 35 shall have effect with the necessary modifications in...
Apportionment of pre-1965 gains and losses
6In a case where because of paragraph 16 of Schedule...
Elections under section section 35(5): excluded disposals
7(1) An election under section 35(5) shall not cover disposals...
Elections under section 35(5): groups of companies
8(1) A company may not make an election under section...
9(1) In paragraph 8 above “the relevant time”, in relation...
SCHEDULE 4 Deferred charges on gains before 31st March 1982
Application of Schedule
A1This Schedule applies only for the purposes of corporation tax....
Reduction of deduction or gain
1Where this Schedule applies— (a) in a case within paragraph...
Charges rolled-over or held-over
2(1) Subject to sub-paragraphs (2) to (4) below, this Schedule...
3(1) This paragraph applies where this Schedule would have applied...
Postponed charges
4(1) Subject to sub-paragraphs (3) to (5) below, this Schedule...
Previous no gain/no loss disposals
5Where— (a) a person makes a disposal of an asset...
6(1) Sub-paragraph (2) below applies where— (a) a person makes...
7For the purposes of this Schedule a no gain/no loss...
Assets derived from other assets
8The references in paragraphs 2(1)(c) and 4(1)(b) above to the...
Claims
9(1) No relief shall be given under this Schedule unless...
SCHEDULE 4ZASub-fund settlements
Making a sub-fund election
1The trustees of a settlement (the “principal settlement”) may elect...
2(1) An election under paragraph 1 (a “sub-fund election”) must...
3Trustees may make a sub-fund election only if—
4Condition 1 is that the principal settlement is not itself...
5Condition 2 is that the sub-fund is not the whole...
6Condition 3 is that, if the sub-fund election had taken...
7For the purpose of Condition 3— (a) section 104(1) shall...
8Condition 4 is that, if the sub-fund election had taken...
9(1) For the purpose of Condition 4 a person is...
Sub-fund elections: procedure
10A sub-fund election must be made— (a) by notice to...
11A sub-fund election may not be made after the second...
12A sub-fund election must contain— (a) a declaration by each...
13A sub-fund election may not be revoked.
Power to make enquiries
14Where a sub-fund election has been made, an officer of...
15The notice shall specify a period of not less than...
16(1) The persons mentioned in paragraph 14 are—
Consequences of a sub-fund election
17The sub-fund settlement shall be treated, for the purposes of...
18(1) Each trustee of the trusts on which the property...
19The trustees of the sub-fund settlement shall be treated for...
20(1) A deemed disposal by the trustees of the principal...
21If the trustees of the sub-fund settlement are treated by...
22(1) If the trustees of the principal settlement are deemed...
SCHEDULE 4ADisposal of interest in settled property: deemed disposal of underlying assets
Circumstances in which this Schedule applies
1This Schedule applies where there is a disposal of an...
Meaning of “interest in settled property”
2(1) For the purposes of this Schedule an “interest in...
Meaning of “for consideration”
3(1) For the purposes of this Schedule a disposal is...
Deemed disposal of underlying assets
4(1) Where this Schedule applies and the following conditions are...
Condition as to UK residence of trustees
5(1) The condition as to UK residence of the trustees...
Condition as to UK residence of settlor
6(1) The condition as to UK residence of the settlor...
Condition as to settlor interest in the settlement
7(1) The condition as to settlor interest in the settlement...
The relevant underlying assets
8(1) Where the interest disposed of is a right in...
Character of deemed disposal
9(1) The deemed disposal shall be taken—
Avoidance of double-counting
10(1) The provisions of this paragraph have effect to prevent...
Recovery of tax from person disposing of interest
11(1) This paragraph applies where chargeable gains accrue to the...
Meaning of “settlor”
12The provisions of paragraphs 7 and 8(1), (3), (6) and...
Cases where there is a period between the beginning of the disposal and its effective completion
13(1) This paragraph applies in a case where there is...
Exception: maintenance funds for historic buildings
14If the trustees of a settlement have elected that 508...
SCHEDULE 4BTransfers of value by trustees linked with trustee borrowing
General scheme of this Schedule
1(1) This Schedule applies where trustees of a settlement—
Transfers of value
2(1) For the purposes of this Schedule trustees of a...
Settlements within section ... 86 or 87
3(1) This paragraph explains what is meant in this Schedule...
Trustee borrowing
4(1) For the purposes of this Schedule trustees of a...
Transfer of value linked with trustee borrowing
5(1) For the purposes of this Schedule a transfer of...
Application of proceeds of borrowing for normal trust purposes
6(1) For the purposes of this Schedule the proceeds of...
Ordinary trust assets
7(1) The following are “ordinary trust assets” for the purposes...
The alternative condition for assets no longer part of the settled property
8(1) The alternative condition referred to in paragraph 6(2)(b) in...
Normal trust purposes: power to make provision by regulations
9(1) The Treasury may make provision by regulations as to...
Deemed disposal of remaining chargeable assets
10(1) Where in accordance with this Schedule a transfer of...
Whether deemed disposal is of whole or a proportion of the assets
11(1) This paragraph provides for determining whether the deemed disposal...
Value attributable to trustee borrowing
12(1) For the purposes of this Schedule the value of...
Assets and transfers
13(1) In this Schedule any reference to an asset includes...
SCHEDULE 4CTransfers of value: attribution of gains to beneficiaries
Introduction
1(1) This Schedule applies where the trustees of a settlement...
Outstanding section 2(2) amounts
1A(1) The following steps are to be taken for the...
Computation of Schedule 4B trust gains
3(1) This paragraph explains what is meant for the purposes...
Chargeable amount: non-resident settlement
4(1) If the transfer of value is made in a...
Chargeable amount: dual resident settlement
5(1) If the transfer of value is made in a...
Gains attributed to settlor
6(1) For the purposes of this Schedule the chargeable amount...
Reduction for allowable losses
7(1) An allowable loss arising under Schedule 4B in relation...
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7A. . . . . . . . . ....
Gains to be brought into pool on subsequent transfer of value
7B(1) This paragraph applies if the trustees of the transferor...
Attribution of Schedule 4C gains to beneficiaries
8(1) Chargeable gains are treated as accruing in a tax...
Relevant settlements
8A(1) This paragraph specifies what settlements are relevant settlements in...
Attribution of gains: remittance basis
8AASection 87B (remittance basis) applies in relation to chargeable gains...
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8B. . . . . . . . . ....
Attribution of gains: Schedule 4C pool gains and other gains
8C. . . . . . . . . ....
Attribution of gains: disregard of certain capital payments
9(1) For the purposes of paragraph 8 (and section 87A...
Residence of trustees from whom capital payment received
10(1) Subject to paragraph 9(3) , it is immaterial for...
Taper relief
11. . . . . . . . . ....
Attribution of gains to settlor in section 10A cases
12(1) This paragraph applies if— (a) by virtue of section...
Attribution of gains to beneficiaries in section 10A cases
12A(1) This paragraph applies where by virtue of section 10A...
Increase in tax payable under this Schedule
13(1) This paragraph applies if— (a) chargeable gains are treated...
Effect of settlement ceasing to exist after transfer of value
13AWhere a settlement ceases to exist after the trustees have...
Interpretation
14(1) In this Schedule— (a) “transfer of value” has the...
SCHEDULE 5 Attribution of gains to settlors with interest in non-resident or dual resident settlement
Construction of section 86(1)(e)
1(1) In construing section 86(1)(e) as regards a particular year...
Test whether settlor has interest
2(1) For the purposes of section 86(1)(d) a settlor has...
Settlements created before 17th March 1998
2A(1) In determining for the purposes of section 86(1)(d) whether...
Exceptions from section 86
3Section 86 does not apply if the settlor dies in...
4(1) This paragraph applies where for the purposes of section...
5(1) This paragraph applies where for the purposes of section...
Right of recovery
6(1) This paragraph applies where any tax becomes chargeable on,...
Meaning of “settlor"
7For the purposes of section 86 and this Schedule, a...
Meaning of “originating"
8(1) References in section 86 and this Schedule to property...
Qualifying settlements, and commencement
9(1) A settlement created on or after 19th March 1991...
Information
10An inspector may by notice require any person who is...
11(1) This paragraph applies if— (a) a settlement has been...
12(1) This paragraph applies if a settlement is created on...
13(1) This paragraph applies if— (a) the trustees of a...
14(1) Nothing in paragraph 11, 12 or 13 above shall...
SCHEDULE 5A Settlements with foreign element: information
1In this Schedule “ the commencement day ” means the...
2(1) This paragraph applies if— (a) a settlement was created...
3(1) This paragraph applies if a settlement is created on...
4(1) This paragraph applies if a settlement is created on...
5(1) This paragraph applies if— (a) the trustees of a...
6(1) Nothing in paragraph 2, 3, 4 or 5 above...
SCHEDULE 5AZAMeaning of “scheme of reconstruction”
Introductory
1In sections 103H and 103I, “scheme of reconstruction” means a...
Form of scheme
2(1) A scheme (“the relevant scheme”) is within this paragraph...
First condition: issue of units
3(1) The first condition is that the relevant scheme involves...
Second condition: equal entitlement to new units
4(1) The second condition is that under the relevant scheme...
Preliminary reorganisation of units to be disregarded
5Where a reorganisation of the units in an original collective...
Subsequent issue of units to be disregarded
6An issue of units in any successor collective investment scheme...
SCHEDULE 5AAMeaning of “scheme of reconstruction”
Introductory
1In section 136 “ scheme of reconstruction ” means a...
First condition: issue of ordinary share capital
2The first condition is that the scheme involves the issue...
Second condition: equal entitlement to new shares
3(1) The second condition is that under the scheme the...
Third condition: continuity of business
4(1) The third condition is that the effect of the...
Fourth condition: compromise or arrangement with members
5The fourth condition is that— (a) the scheme is carried...
Preliminary reorganisation of share capital to be disregarded
6Where a reorganisation of the share capital of the original...
Subsequent issue of shares or debentures to be disregarded
7An issue of shares in or debentures of the successor...
Interpretation
8(1) In this Schedule “ ordinary share capital ” has...
SCHEDULE 5B Enterprise investment scheme: re-investment
Application of Schedule
1(1) This Schedule applies where— (a) there would (apart from...
Failure of conditions of application
1A(1) If the condition in sub-paragraph (2)(b) or (2)(da) of...
Postponement of original gain
2(1) On the making of a claim by the investor...
Chargeable events
3(1) Subject to the following provisions of this paragraph, there...
Gain accruing on chargeable event
4(1) On the occurrence of a chargeable event in relation...
Person to whom gain accrues
5(1) The chargeable gain which accrues, in accordance with paragraph...
Claims
6(1) Subject to sub-paragraph (2) below, section 306 of the...
Reorganisations
7(1) Where an individual holds shares which form part of...
Acquisition of share capital by new company
8(1) This paragraph applies where— (a) a company (“the new...
Other reconstructions and amalgamations
9(1) This paragraph applies if section 135 or 136 (company...
Re-investment in same company etc.
10(1) An individual to whom any eligible shares in a...
Pre-arranged exits
11(1) Where an individual subscribes for eligible shares (“the shares")...
Disqualifying arrangements
11A(1) Where an individual subscribes for eligible shares (“the shares”)...
Put options and call options
12(1) Sub-paragraph (2) below applies where an individual subscribes for...
Value received by investor
13(1) Where an individual who subscribes for eligible shares (“the...
Provision supplemental to paragraph 13
13A(1) For the purposes of paragraph 13 above, the value...
Receipt of replacement value
13B(1) Where— (a) by reason of a receipt of value...
Provision supplemental to paragraph 13B
13C(1) The receipt of the replacement value by the original...
Value received by other persons
14(1) Sub-paragraph (2) below applies where an individual subscribes for...
Insignificant repayments disregarded for purposes of paragraph 14
14AA(1) Any repayment shall be disregarded for the purposes of...
Certain receipts to be disregarded for purposes of paragraph 14
14A(1) Sub-paragraph (4) below applies where, by reason of a...
Investment-linked loans
15(1) Where at any time in the relevant period an...
Information
16(1) Where, in relation to any of the relevant shares...
Trustees: general
17(1) Subject to the following provisions of this paragraph, this...
Trustees: anti-avoidance
18(1) Paragraphs 13 to 13C and 15 above shall have...
Interpretation
19(1) For the purposes of this Schedule— “ 51 per...
SCHEDULE 5BA Enterprise investment scheme: application of taper relief
Application of Schedule
1. . . . . . . . . ....
Taper relief on revived gains
2. . . . . . . . . ....
Qualifying holding period
3. . . . . . . . . ....
Periods that do not count
4. . . . . . . . . ....
Gains on disposal of business or non-business assets
5. . . . . . . . . ....
Savings
6. . . . . . . . . ....
Relevant re-investment shares
7. . . . . . . . . ....
Derivation of gains
8. . . . . . . . . ....
Interpretation
9. . . . . . . . . ....
SCHEDULE 5BBSeed enterprise investment scheme: re-investment
SEIS re-investment relief
1(1) Sub-paragraph (5) applies where conditions A to C are...
Restrictions on relief under paragraph 1
2(1) Sub-paragraph (2) applies if the investor's tax reduction under...
Claims
3(1) Section 257EA of ITA 2007 (time for making claims...
Attribution of SEIS re-investment relief to relevant SEIS shares
4(1) References in this Schedule to the SEIS re-investment relief...
Removal or reduction of the relief
5(1) This paragraph applies where in respect of shares issued...
Transfers of shares to spouses and civil partners
6(1) This paragraph applies if— (a) shares to which an...
Adjustment of capital gains tax liability
7(1) All such adjustments of capital gains tax are to...
Interpretation etc
8(1) In this Schedule— “ bonus shares ” means shares...
SCHEDULE 5CVenture capital trusts: deferred charge on re-investment
Application of Schedule
1. . . . . . . . . ....
The postponement of the original gain
2(1) On the making of a claim by the investor...
Chargeable events
3(1) Subject to the following provisions of this paragraph, there...
Gain accruing on chargeable event
4(1) On the occurrence of a chargeable event in relation...
Persons to whom gain accrues
5(1) The chargeable gain which accrues in accordance with paragraph...
Interpretation
6(1) In this Schedule “non-resident” means a person who is...
SCHEDULE 6 Retirement relief etc.
Part I Interpretation
1. . . . . . . . . ....
2. . . . . . . . . ....
3. . . . . . . . . ....
4. . . . . . . . . ....
Part II The operation of the relief
Disposals on which relief may be given
5. . . . . . . . . ....
Gains qualifying for relief
6. . . . . . . . . ....
7. . . . . . . . . ....
8. . . . . . . . . ....
9. . . . . . . . . ....
10. . . . . . . . . ....
11. . . . . . . . . ....
12. . . . . . . . . ....
The amount available for relief: the basic rule
13. . . . . . . . . ....
Aggregation of earlier business periods
14. . . . . . . . . ....
Relief given on earlier disposal
15. . . . . . . . . ....
Aggregation of spouse’s interest in the business
16. . . . . . . . . ....
SCHEDULE 7 Relief for gifts of business assets
Part I Agricultural property and settled property
Agricultural property
1(1) This paragraph applies where— (a) there is a disposal...
Settled property
2(1) If— (a) the trustees of a settlement make a...
3(1) This paragraph applies where— (a) there is a disposal...
Part II Reductions in held-over gain
Application and interpretation
4(1) The provisions of this Part of this Schedule apply...
Reductions peculiar to disposals of assets
5(1) If, in the case of a disposal of an...
6(1) If, in the case of a disposal of an...
Reduction peculiar to disposal of shares
7(1) If in the case of a disposal of shares...
Reduction where gain partly relieved by retirement relief
8(1) If, in the case of a disposal of an...
SCHEDULE 7A Restriction on set-off of pre-entry losses
Application and construction of Schedule
1(1) This Schedule shall have effect, in the case of...
Pre-entry proportion of losses on pre-entry assets
2. . . . . . . . . ....
Disposals of pooled assets
3. . . . . . . . . ....
Rule to prevent pre-entry losses on pooled assets being treated as post-entry losses
4. . . . . . . . . ....
Alternative calculation by reference to market value
5. . . . . . . . . ....
Restrictions on the deduction of pre-entry losses
6(1) In the calculation of the amount to be included...
Gains from which pre-entry losses are to be deductible
7(1) A pre-entry loss that accrued to a company before...
Change of a company’s nature
8(1) If— (a) within any period of three years, a...
Identification of “the relevant group" and application of Schedule to every connected group
9. . . . . . . . . ....
Appropriations to stock in trade
10Where, but for an election under subsection (3) of section...
Continuity provisions
11(1) This paragraph applies where provision has been made by...
Companies changing groups on certain transfers of shares etc.
12For the purposes of this Schedule, and without prejudice to...
SCHEDULE 7AA Restrictions on setting losses against pre-entry gains
Introductory
1(1) This Schedule applies in the case of any company...
Restriction on setting off losses
2(1) Notwithstanding anything in section 8 or Schedule 7A, the...
Adjustment of pre-entry gains
3(1) For the purposes of paragraph 2 above the adjusted...
Meaning of “qualifying losses"
4(1) Any amount which, in the case of the relevant...
Special rule for disposal of pooled assets
5(1) This paragraph applies where— (a) any holding of securities...
Special rule for losses on disposal of certain assets acquired at different times
6(1) This paragraph applies in relation to any allowable loss...
Special rule for gains and losses on deemed annual disposal
7Where— (a) a chargeable gain or allowable loss is treated...
SCHEDULE 7ABRoll-over of degrouping charge: modification of enactments
Introductory
1. . . . . . . . . ....
Section 152
2. . . . . . . . . ....
Section 153
3. . . . . . . . . ....
Section 153A
4. . . . . . . . . ....
Section 155
5. . . . . . . . . ....
Section 159
6. . . . . . . . . ....
Section 175
7. . . . . . . . . ....
Section 185
8. . . . . . . . . ....
Section 198
9. . . . . . . . . ....
Schedule 22 to the Finance Act 2000
10. . . . . . . . . ....
SCHEDULE 7ACExemptions for disposals by companies with substantial shareholding
Part 1The exemptions
The main exemption
1(1) A gain accruing to a company (“ the investing...
Subsidiary exemption: disposal of asset related to shares where main exemption conditions met
2(1) A gain accruing to a company (“ company A...
Subsidiary exemption: disposal of shares or related asset where main exemption conditions previously met
3(1) A gain accruing to a company (“ company A...
Application of exemptions in priority to provisions deeming there to be no disposal etc
4(1) For the purposes of determining whether an exemption conferred...
Circumstances in which exemptions do not apply
5(1) Where in pursuance of arrangements to which this paragraph...
Other cases excluded from exemptions
6(1) The exemptions conferred by this Schedule do not apply—...
Part 2The substantial shareholding requirement
The requirement
7The investing company must have held a substantial shareholding in...
Meaning of “substantial shareholding"
8(1) For the purposes of this Schedule a company holds...
Aggregation of holdings of group companies
9(1) For the purposes of paragraph 7 (the substantial shareholding...
Effect of earlier no-gain/no-loss transfer
10(1) For the purposes of this Part the period for...
Effect of deemed disposal and reacquisition
11(1) For the purposes of this Part a company is...
Effect of repurchase agreement
12(1) This paragraph applies where— (a) a company (“ the...
Effect of stock lending arrangements
13(1) This paragraph applies where— (a) a company that holds...
Effect in relation to company invested in of earlier company reconstruction etc
14(1) This paragraph applies where shares in one company (“...
Effect in relation to company invested in of earlier demerger
15(1) This paragraph applies where shares in one company (“...
Effect of transfer of trading assets within a group
15A(1) For the purposes of this Part, the period for...
Effect of investing company’s liquidation
16Where assets of the investing company, or of a company...
Special rules for assets of insurance company held for the purposes of its long-term business
17(1) In the following two cases paragraph 8(1) (meaning of...
Part 3Requirements to be met in relation to investing company and company invested in
Requirements relating to the investing company
18(1) The investing company must— (a) have been a sole...
Requirements relating to the company invested in
19(1) The company invested in must— (a) have been a...
Meaning of “trading company"
20(1) In this Schedule “ trading company ” means a...
Meaning of “trading group"
21(1) In this Schedule “ trading group ” means a...
Meaning of “trading subgroup"
22(1) In this Schedule “ trading subgroup ” means a...
Treatment of holdings in joint venture companies
23(1) This paragraph applies where a company (“ the company...
Meaning of “joint venture company" and “qualifying shareholding"
24(1) For the purposes of this Schedule a company is...
Effect in relation to company invested in of earlier company reconstruction, demerger etc
25The provisions of— (a) paragraph 14 (effect of earlier company...
Part 4Interpretation
Meaning of “company", “group" and related expressions
26(1) In this Schedule— (a) “ company ” has the...
Meaning of “trade"
27In this Schedule “ trade ” means anything that—
Meaning of “twelve-month period"
28For the purposes of this Schedule a “ twelve-month period...
Meaning of “interest in shares"
29(1) References in this Schedule to an interest in shares...
Meaning of “asset related to shares"
30(1) This paragraph explains what is meant by an asset...
Index of defined expressions
31In this Schedule the expressions listed below are defined or...
Part 5Consequential provisions
Meaning of “chargeable shares" or “chargeable asset"
32Any exemption conferred by this Schedule shall be disregarded in...
Negligible value claims
33(1) This paragraph applies where— (a) a company makes a...
Reorganisations etc: deemed accrual of chargeable gain or allowable loss held over on earlier transaction
34(1) The exemptions conferred by this Schedule do not apply...
Recovery of charge postponed on transfer of assets to non-resident company
35(1) This paragraph applies where— (a) a company disposes of...
Appropriation of asset to trading stock
36(1) Where— (a) an asset acquired by a company otherwise...
Recovery of held-over gain on claim for gifts relief
37(1) This paragraph applies where— (a) a company disposes of...
Degrouping: time when deemed sale and reacquisition treated as taking place
38(1) Where— (a) a company, as a result of ceasing...
Effect of FOREX matching regulations
39(1) No gain or loss shall be treated as arising...
SCHEDULE 7ADGains of insurance company from venture capital investment partnership
Introduction
1This Schedule applies where the assets held by an insurance...
Meaning of “venture capital investment partnership”
2(1) A “venture capital investment partnership” means a partnership in...
Interest in relevant assets of partnership treated as single asset
3(1) Where this Schedule applies section 59 (partnerships) does not...
The cost of the single asset
4(1) The company is treated as having given, wholly and...
Deemed disposal of single asset in case of distribution
5(1) There is a disposal of the single asset on...
Apportionment in case of part disposal
6(1) For the purposes of section 42 (apportionment of cost...
Disposal of partnership asset giving rise to offshore income gain
7(1) Nothing in this Schedule shall be read as affecting...
Exclusion of negligible value claim
8No claim may be made in respect of the single...
Investment in other venture capital investment partnerships
9(1) For the purposes of paragraph 2 (meaning of “venture...
Interpretation
10(1) In this Schedule— “insurance company”, “long-term business” and “long-term...
General commencement and transitional provisions
11(1) Subject to paragraph 12 (election to remain outside Schedule),...
Election to remain outside Schedule
12If the company— (a) became a member of the partnership...
How and when election to be made
13Any election under paragraph 11 or 12 must be made—...
SCHEDULE 7BModification of Act in relation to overseas life insurance companies
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SCHEDULE 7CRelief for transfers to approved share plans
Introductory
1(1) A person (“the claimant”) who makes a disposal of...
Conditions relating to the disposal
2(1) The first condition is that, at the time of...
Reinvestment of disposal proceeds
3(1) This sub-paragraph applies if the claimant obtains consideration for...
Provision supplementary to paragraphs 2 and 3
4(1) This paragraph applies for the purposes of paragraphs 2...
The relief
5(1) Where the claimant is entitled to claim relief under...
Dwelling-houses: special provision
6(1) Sub-paragraph (2) applies where— (a) a claim is made...
Shares: special provision
7(1) Sub-paragraph (2) applies where— (a) a claim is made...
Meaning of “chargeable asset”
8For the purposes of this Schedule an asset is a...
SCHEDULE 7DApproved share schemes and share incentives
Part 1Approved share incentive plans
Introductory
1(1) The provisions of this Part of this Schedule apply...
Gains accruing to trustees
2(1) Any gain accruing to the trustees is not a...
Participant absolutely entitled as against trustees
3(1) Sub-paragraph (2) applies to any shares awarded to a...
Different classes of shares
4(1) For the purposes of Chapter 1 of Part 4...
No chargeable gain on shares ceasing to be subject to the plan
5(1) Shares which cease to be subject to the plan...
Deemed disposal by trustees on disposal of beneficial interest
6(1) If at any time the participant’s beneficial interest in...
Treatment of forfeited shares
7(1) If any of the participant’s plan shares are forfeited,...
Disposal of rights under rights issue
8(1) Any gain accruing on the disposal of rights under...
Part 2Approved SAYE option schemes
Introductory
9(1) This Part of this Schedule forms part of the...
Market value rule not to apply
10(1) This paragraph applies where— (a) a share option (“the...
Part 3Approved CSOP schemes
Introductory
11(1) This Part of this Schedule forms part of the...
Relief where income tax charged in respect of grant of option
12(1) This paragraph applies where an amount (the “employment income...
Market value rule not to apply
13(1) This paragraph applies where— (a) the individual exercises the...
Part 4Enterprise management incentives
Introductory
14(1) This Part of this Schedule forms part of the...
Taper relief on disposal of qualifying shares
15. . . . . . . . . ....
Rights issues in respect of qualifying shares
16Where— (a) an individual holds qualifying shares, and
SCHEDULE 8Leases
Leases of land as wasting assets: curved line restriction of allowable expenditure
1(1) A lease of land shall not be a wasting...
Premiums for leases
2(1) Subject to this Schedule where the payment of a...
3(1) This paragraph applies in relation to a lease of...
Subleases out of short leases
4(1) In the computation of the gain accruing on the...
Exclusion of premiums taxed as receipts of a property business etc.
5(1) Where by reference to any premium any amount is...
6(1) If under section 292 of ITTOIA 2005 or section...
7If— (a) under section 277 of ITTOIA 2005 any amount...
7AReferences in paragraphs 5 to 7 above to an amount...
Duration of leases
8(1) In ascertaining for the purposes of this Act the...
Leases of property other than land
9(1) Paragraphs 2, 3, 4 and 8 of this Schedule...
Interpretation
10(1) In this Act, unless the context otherwise requires “lease”...
SCHEDULE 8A
Introductory
1(1) This Schedule applies where— (a) an individual makes a...
Section 37 operates to exclude the whole consideration
2(1) This paragraph applies where the section 37 amount constitutes...
Section 37 operates to exclude part of the consideration
3(1) This paragraph applies where the section 37 amount constitutes...
Interpretation
4In this Schedule— “ debt costs ” means the sums...
SCHEDULE 9Gilt-edged securities
Part IGeneral
1For the purposes of this Act “gilt-edged securities” means the...
1A(1) Any security which is a strip of a security...
2The Treasury shall cause particulars of any order made under...
3Section 14(b) of the Interpretation Act 1978 (implied power to...
Part IIExisting gilt-edged securities
SCHEDULE 10Consequential amendments
Post Office Act 1969 c. 48
1In section 74 of the Post Office Act 1969 for...
Taxes Management Act 1970 c. 9
2(1) The Taxes Management Act 1970 shall have effect subject...
Finance Act 1973 c. 51
3(1) In section 38(2) of the Finance Act 1973 for...
British Aerospace Act 1980 c. 26
4In section 12(2) of the British Aerospace Act 1980 for...
British Telecommunications Act 1981 c. 38
5In section 82(1) for “Capital Gains Tax Act 1979” and...
Value Added Tax Act 1983 c. 55
6In Group 11 of Schedule 6 to the Value Added...
Telecommunications Act 1984 c. 12
7In section 72(2) of the Telecommunications Act 1984 for “272(5)...
Inheritance Tax Act 1984 c. 51
8(1) The Inheritance Tax Act shall have effect subject to...
Finance Act 1985 c. 54
9In section 81 for “Capital Gains Tax Act 1979” there...
Trustee Savings Bank Act 1985 c. 58
10(1) In paragraph 2 of Schedule 2 to the Trustee...
Transport Act 1985 c. 67
11In section 130— (a) in subsection (3) for “Capital Gains...
Airports Act 1986 c. 31
12In section 77(2) of the Airports Act 1986 for “272(5)...
Gas Act 1986 c. 44
13In section 60(2) of the Gas Act 1986 for “272(5)...
Income and Corporation Taxes Act 1988 c. 1
14(1) The Income and Corporation Taxes Act 1988 shall have...
British Steel Act 1988 c. 35
15In section 11(2) of the British Steel Act 1988 for...
Finance Act 1988 c. 39
16(1) The Finance Act 1988 shall have effect subject to...
Health and Medicines Act 1988 c. 49
17In section 6(2) of the Health and Medicines Act 1988...
Water Act 1989 c. 15
18In section 95 of the Water Act 1989—
Finance Act 1989 c. 26
19(1) In section 69(9) of the Finance Act 1989 for...
Electricity Act 1989 c. 29
20(1) In paragraph 2 of Schedule 11 to the Electricity...
Capital Allowances Act 1990 c. 1
21(1) The following section shall be inserted in the Capital...
Finance Act 1990 c. 29
22(1) The Finance Act 1990 shall have effect subject to...
Finance Act 1991 c. 31.
23In section 72(4) of the Finance Act 1991 for “5(1)...
Ports Act 1991 c. 52
24(1) In section 16 of the Ports Act 1991 for...
British Technology Group Act 1991 c. 66
25In section 12(2) of the British Technology Group Act 1991...
SCHEDULE 11Transitional provisions and savings
Part IValuation
Preliminary
1(1) This Part of this Schedule has effect in cases...
Gifts and transactions between connected persons before 20th March 1985
2(1) Where sub-paragraph (1) above applies for the purpose of...
Valuation of assets before 6th July 1973
3Section 273 shall apply for the purposes of determining the...
4(1) This paragraph applies if, in a case where the...
5(1) In any case where— (a) before 6th July 1973...
Valuation of assets on 6th April 1965
6(1) For the purpose of ascertaining the market value of...
References to the London Stock Exchange before 25th March 1973and Exchange Control restrictions before 13th December 1979
7(1) For the purposes of ascertaining the market value of...
Depreciated valuations referable to deaths before 31st March 1973
8In any case where this Part applies, section 272(2) shall...
Estate duty
9(1) Where estate duty (including estate duty leviable under the...
Part IIOther transitory provisions
Value-shifting
10(1) Section 30 applies only where the reduction in value...
Assets acquired on disposal chargeable under Case VII of Schedule D
11(1) In this paragraph references to a disposal chargeable under...
Unrelieved Case VII losses
12Where no relief from income tax (for a year earlier...
Devaluation of sterling: securities acquired with borrowed foreign currency
13(1) This paragraph applies where, in pursuance of permission granted...
Devaluation of sterling: foreign insurance funds
14(1) The sums allowable as a deduction under section 38(1)(a)...
Gilt-edged securities past redemption date
15So far as material for the purposes of this or...
Qualifying corporate bonds, company reorganisations, share conversions etc.
16(1) Part IV of this Act has effect subject to...
Land: allowance for betterment levy
17(1) Where betterment levy charged in the case of any...
Non-resident trusts
18Without prejudice to section 289 or Part III of this...
Private residences
19The reference in section 222(5)(a) to a notice given by...
Works of art etc.
20The repeals made by this Act do not affect the...
Disposal before acquisition
21The substitution of this Act for the corresponding enactments repealed...
Estate duty
22Nothing in the repeals made by this Act shall affect...
Validity of subordinate legislation
23So far as this Act re-enacts any provision contained in...
Amendments in other Acts
24(1) The repeal by this Act of the Income and...
Saving for Part III of this Schedule
25The provisions of this Part of this Schedule are without...
Part IIIAssets acquired before commencement
26(1) The substitution of this Act for the enactments repealed...
27Where the acquisition or provision of any asset by one...
Part IVOther general savings
28Where under any Act passed before this Act and relating...
29(1) The continuity of the law relating to the taxation...
SCHEDULE 12 Repeals

Royal arms

Taxation of Chargeable Gains Act 1992

1992 CHAPTER 12

An Act to consolidate certain enactments relating to the taxation of chargeable gains.

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—