Taxation of Chargeable Gains Act 1992

1. Introductory Text

2. Part I Capital gains tax and corporation tax on chargeable gains

   1. General

      1. 1. The charge to tax.

   2. Capital gains tax

      1. 2. Persons and gains chargeable to capital gains tax, and allowable losses.

      2. 2A. Taper relief.

      3. 2B. Persons chargeable to capital gains tax on ATED-related gains

      4. 2C. “Relevant high value disposal”

      5. 2D. “The threshold amount”

      6. 2E. Restriction of losses

      7. 2F. Tapering relief for gains

      8. 3. Annual exempt amount.

      9. 3A. Reporting limits

      10. 4. Rates of capital gains tax

      11. 4A. Section 4: special cases

      12. 4B. Deduction of losses etc in most beneficial way

      13. 5. Accumulation and discretionary settlements.

      14. 6. Other special cases.

      15. 7. Time for payment of tax.

   3. Corporation tax

      1. 8. Company’s total profits to include chargeable gains.

   4. Residence etc.

      1. 9. Residence, including temporary residence.

      2. 10. Non-resident with United Kingdom branch or agency.

      3. 10A. Temporary non-residents.

      4. 10AA. Section 10A: supplementary

      5. 10B. Non-resident company with United Kingdom permanent establishment

      6. 11. Visiting forces and official agents

      7. 12. Non-UK domiciled individuals to whom remittance basis applies

      8. 13. Attribution of gains to members of non-resident companies.

      9. 13A. Section 13(5): interpretation

      10. 14. Non-resident groups of companies.

      11. 14A. Section 13: non-UK domiciled individuals

   5. UK residential property: non-resident CGT

      1. 14B. Meaning of “non-resident CGT disposal”

      2. 14C. Meaning of “disposal of a UK residential property interest”

      3. 14D. Persons chargeable to capital gains tax on NRCGT gains

      4. 14E. Further provision about use of NRCGT losses

      5. 14F. Persons not chargeable under section 14D if a claim is made

      6. 14G. Section 14F: divided companies

      7. 14H. Section 14F: arrangements for avoiding tax

3. Part II General Provisions relating to computation of gains and acquisitions and disposals of assets

   1. Chapter I Introductory

      1. 15. Computation of gains.

      2. 16. Computation of losses.

      3. 16ZA. Losses: non-UK domiciled individuals

      4. 16ZB. Individual who has made election under section 16ZA: foreign chargeable gains remitted in tax year after tax year in which accrue

      5. 16ZC. Individual who has made election under section 16ZA and to whom remittance basis applies

      6. 16ZD. Section 16ZC: supplementary

      7. 16A. Restrictions on allowable losses

      8. 17. Disposals and acquisitions treated as made at market value.

      9. 18. Transactions between connected persons.

      10. 19. Deemed consideration in certain cases where assets disposed of in a series of transactions.

      11. 20. Original market value and aggregate market value for purposes of section 19.

   2. Chapter II Assets and disposals of assets

      1. General provisions

         1. 21. Assets and disposals.

         2. 22. Disposal where capital sums derived from assets.

         3. 23. Receipt of compensation and insurance money not treated as a disposal.

         4. 24. Disposals where assets lost or destroyed, or become of negligible value.

         5. 25. Non-residents: deemed disposals.

         6. 25ZA. Deemed disposal of UK residential property interest under section 25(3)

         7. 25A. Long funding leases of plant or machinery: deemed disposals

         8. 26. Mortgages and charges not to be treated as disposals.

         9. 26A. Transfer of dormant bank or building society account

         10. 27. Disposals in cases of hire-purchase and similar transactions.

         11. 28. Time of disposal and acquisition where asset disposed of under contract.

      2. Value shifting

         1. 29. General provisions.

         2. 30. Tax-free benefits.

         3. 31. Disposal of shares or securities by a company

   3. Chapter III Computation of gains: General provisions

      1. Re-basing to 1982, and assets held on 6th April 1965

         1. 35. Assets held on 31st March 1982 (including assets held on 6th April 1965).

         2. 35A. Disposal of asset acquired on no gain/no loss disposal

         3. 36. Deferred charges on gains before 31st March 1982.

      2. Allowable deductions

         1. 37. Consideration chargeable to tax on income.

         2. 37A. Consideration on disposal of certain leases

         3. 38. Acquisition and disposal costs etc.

         4. 39. Exclusion of expenditure by reference to tax on income.

         5. 40. Interest charged to capital.

         6. 41. Restriction of losses by reference to capital allowances and renewals allowances.

         7. 41A. Restriction of losses: long funding leases of plant or machinery

         8. 42. Part disposals.

         9. 43. Assets derived from other assets.

      3. Wasting assets

         1. 44. Meaning of “wasting asset".

         2. 45. Exemption for certain wasting assets.

         3. 46. Straightline restriction of allowable expenditure.

         4. 47. Wasting assets qualifying for capital allowances.

      4. Cash basis accounting

         1. 47A. Exemption for disposals by persons using cash basis

         2. 47B. Disposals made by persons after leaving cash basis

      5. Miscellaneous provisions

         1. 48. Consideration due after time of disposal.

         2. 48A. Unascertainable consideration

         3. 49. Contingent liabilities.

         4. 50. Expenditure reimbursed out of public money.

         5. 51. Exemption for winnings and damages etc.

         6. 52. Supplemental.

   4. Chapter IV Computation of gains: the indexation allowance

      1. General

         1. 52A. Chapter to apply only for corporation tax purposes

         2. 53. The indexation allowance and interpretative provisions.

         3. 54. Calculation of indexation allowance.

         4. 55. Assets owned on 31st March 1982 or acquired on a no gain/no loss disposal.

         5. 56. Part disposals and disposals on a no-gain/no-loss basis.

         6. 57. Receipts etc. which are not treated as disposals but affect relevant allowable expenditure.

   5. Chapter 5 Computation of gains and losses: relevant high value disposals

      1. 57A. Gains and losses on relevant high value disposals

   6. Chapter 6 Computation of gains and losses: non-resident CGT disposals

      1. 57B. Gains and losses on non-resident CGT disposals

4. Part III Individuals, partnerships, trusts and collective investment schemes etc

   1. Chapter I Miscellaneous provisions

      1. 58. Spouses and civil partners.

      2. 59. Partnerships.

      3. 59A. Limited liability partnerships.

      4. 59B. Alternative investment fund managers (1)

      5. 59C. Alternative investment managers (2)

      6. 60. Nominees and bare trustees.

      7. 61. Funds in court.

      8. 62. Death: general provisions.

      9. 63. Death: application of law in Scotland.

      10. 63A. Death: application of law in Northern Ireland

      11. 64. Expenses in administration of estates and trusts.

      12. 65. Liability for tax of trustees or personal representatives.

      13. 66. Insolvents’ assets.

      14. 67. Provisions applicable where section 79 of the Finance Act 1980 has applied.

   2. Chapter II Settlements

      1. General provisions

         1. 68. Meaning of “settled property".

         2. 68A. Meaning of “settlor”

         3. 68B. Transfer between settlements: identification of settlor

         4. 68C. Variation of will or intestacy, etc: identification of settlor

         5. 69. Trustees of settlements.

         6. 69A. Sub-fund settlements

         7. 70. Transfers into settlement.

         8. 71. Person becoming absolutely entitled to settled property.

         9. 72. Termination of life interest on death of person entitled.

         10. 73. Death of life tenant: exclusion of chargeable gain.

         11. 74. Effect on sections 72 and 73 of relief under section 165 or 260.

         12. 75. Death of annuitant.

         13. 76. Disposal of interests in settled property.

         14. 76A. Disposal of interest in settled property: deemed disposal of underlying assets.

         15. 76B. Transfers of value by trustees linked with trustee borrowing.

         16. 77. Charge on settlor with interest in settlement.

         17. 78. Right of recovery.

         18. 79. Provisions supplemental to sections 77 and 78.

         19. 79A. Restriction on set-off of trust losses.

         20. 79B. Attribution to trustees of gains of non-resident companies.

      2. Migration of settlements, non-resident settlements and dual resident settlements

         1. 80. Trustees ceasing to be resident in U.K.

         2. 80A. Deemed disposal of UK residential property interest under section 80

         3. 81. Death of trustee: special rules.

         4. 82. Past trustees: liability for tax.

         5. 83. Trustees ceasing to be liable to U.K. tax.

         6. 83A. Trustees both resident and non-resident in a year of assessment

         7. 84. Acquisition by dual resident trustees.

         8. 85. Disposal of interests in non-resident settlements.

         9. 85A. Transfers of value: attribution of gains to beneficiaries and treatment of losses

         10. 86. Attribution of gains to settlors with interest in non-resident or dual resident settlements.

         11. 86A. Attribution of gains to settlor in section 10A cases

         12. 87. Non-UK resident settlements: attribution of gains to beneficiaries

         13. 87A. Section 87: matching

         14. 87B. Section 87: remittance basis

         15. 87C. Sections 87 and 87A: disregard of certain capital payments

         16. 88. Gains of dual resident settlements.

         17. 89. Migrant settlements etc.

         18. 90. Sections 87 and 89(2): transfers between settlements

         19. 90A. Section 90: transfers made for consideration in money or money's worth

         20. 91. Increase in tax payable under section 87 or 89(2).

         21. 92. Qualifying amounts and matching.

         22. 93. Matching: special cases.

         23. 94. Transfers of settled property where qualifying amounts not wholly matched.

         24. 95. Matching after transfer.

         25. 96. Payments by and to companies.

         26. 97. Supplementary provisions.

         27. 98. Power to obtain information for purposes of sections 87 to 90.

         28. 98A. Settlements with foreign element: information.

   3. Chapter III Collective investment schemes and investment trusts etc

      1. 99. Application of Act to unit trust schemes.

      2. 99A. Treatment of umbrella schemes

      3. 99B. Calculation of the disposal cost of accumulation units

      4. 100. Exemption for authorised unit trusts etc.

      5. 100A. Exemption for certain EEA UCITS

      6. 101. Transfer of company’s assets to investment trust.

      7. 101A. Transfer within group to investment trust.

      8. 101B. Transfer of company’s assets to venture capital trust.

      9. 101C. Transfer within group to venture capital trust.

      10. 102. Collective investment schemes with property divided into separate parts.

      11. 103. Restriction on availability of indexation allowance.

      12. 103A. Application of Act to certain offshore funds

      13. 103B. Application of section 99B to transparent funds

      14. 103C. Power to make regulations about collective investment schemes

      15. 103D. Co-ownership schemes

   4. Chapter 4 Collective investment schemes: exchanges, mergers and schemes of reconstruction

      1. 103E. Application of Chapter

      2. 103F. Exchanges of units for units in the same scheme

      3. 103G. Exchange of units for those in another collective investment scheme

      4. 103H. Scheme of reconstruction involving issue of units

      5. 103I. Scheme of reconstruction involving conversion scheme

      6. 103J. Supplementary provisions

      7. 103K. Restriction on application of sections 103G, 103H and 103I

5. Part IV Shares, securities, options etc.

   1. Chapter I General

      1. Share pooling, identification of securities, and indexation

         1. 104. Share pooling: general interpretative provisions.

         2. 105. Disposal on or before day of acquisition of shares and other unidentified assets.

         3. 105A. Shares acquired on same day: election for alternative treatment

         4. 105B. Provision supplementary to section 105A

         5. 106. Disposal of shares and securities by company within prescribed period of acquisition.

         6. 106A. Identification of securities: ... capital gains tax.

         7. 107. Identification of securities etc: general rules for corporation tax.

         8. 108. Identification of relevant securities for corporation tax.

         9. 109. Corporation tax: pre-April 1982 share pools.

         10. 110. Indexation for section 104 holdings for corporation tax.

         11. 110A. Indexation for section 104 holdings: capital gains tax.

         12. 111. Indexation: building society etc. shares.

         13. 112. Parallel pooling regulations: corporation tax.

         14. 113. Calls on shares: corporation tax.

         15. 114. Consideration for options: corporation tax.

      2. Gilt-edged securities and qualifying corporate bonds

         1. 115. Exemptions for gilt-edged securities and qualifying corporate bonds etc.

         2. 116. Reorganisations, conversions and reconstructions.

         3. 116A. Holding beginning or ceasing to fall within section 490 of CTA 2009

         4. 116B. Shares beginning or ceasing to be shares to which section 521B of CTA 2009 applies

         5. 117. Meaning of “qualifying corporate bond".

         6. 117A. Assets that are not qualifying corporate bonds for corporation tax purposes.

         7. 117B. Holdings in unit trusts and offshore funds excluded from treatment as qualifying corporate bonds.

      3. Deep discount securities, the accrued income scheme etc.

         1. 118. Amount to be treated as consideration on disposal of deep discount securities etc.

         2. 119. Transfers of securities subject to the accrued income scheme.

         3. 119A. Increase in expenditure by reference to tax charged in relation to employment-related securities

         4. 119B. Section 119A: unchargeable, and unremitted chargeable, foreign securities income

         5. 119C. Section 119A: unremitted Part 7A income

         6. 120. Increase in expenditure by reference to tax charged in relation to shares etc.

      4. Savings certificates etc.

         1. 121. Exemption for government non-marketable securities.

      5. Capital distribution in respect of shares etc.

         1. 122. Distribution which is not a new holding within Chapter II.

         2. 123. Disposal of right to acquire shares or debentures.

      6. Close companies

         1. 124. Disposal of shares: relief in respect of income tax consequent on shortfall in distributions.

         2. 125. Shares in close company transferring assets at an undervalue.

      7. Share loss relief

         1. 125A. Effect of share loss relief

   2. Chapter II Reorganisation of share capital, conversion of securities etc.

      1. Reorganisation or reduction of share capital

         1. 126. Application of sections 127 to 131.

         2. 127. Equation of original shares and new holding.

         3. 128. Consideration given or received by holder.

         4. 129. Part disposal of new holding.

         5. 130. Composite new holdings.

         6. 131. Indexation allowance.

      2. Conversion of securities

         1. 132. Equation of converted securities and new holding.

         2. 133. Premiums on conversion of securities.

         3. 134. Compensation stock.

      3. Company reconstructions ...

         1. 135. Exchange of securities for those in another company

         2. 136. Scheme of reconstruction involving issue of securities

         3. 137. Restriction on application of sections 135 and 136.

         4. 138. Procedure for clearance in advance.

         5. 138A. Use of earn-out rights for exchange of securities.

         6. 139. Reconstruction ... involving transfer of business.

         7. 140. Postponement of charge on transfer of assets to non-resident company.

      4. Transfers concerning companies of different member States

         1. 140A. Transfer or division of UK business

         2. 140B. Section 140A: anti-avoidance.

         3. 140C. Transfer or division of non-UK business

         4. 140D. Section 140C: anti-avoidance.

         5. 140DA. Securities issued on division of business

      5. Mergers within European Community

         1. 140E. Merger leaving assets within UK tax charge

         2. 140F. Merger: assets outside UK tax charge

         3. 140G. Treatment of securities issued on merger

         4. 140GA. Disapplication of sections 24 and 122 where subsidiary merges with its parent

      6. Transparent entities: disapplication of reliefs related to Mergers Directive

         1. 140H. Share exchanges

         2. 140I. Division of business or transfer of assets

         3. 140J. Mergers

         4. 140K. Transparent entities: taxation after merger, &c

         5. 140L. Interpretation

   3. Chapter III Miscellaneous provisions relating to commodities, futures, options and other securities

      1. 142. Capital gains on stock dividends.

      2. 142A. REITs: chargeable gains on stock dividends

      3. 143. Commodity and financial futures and qualifying options.

      4. 144. Options and forfeited deposits.

      5. 144ZA. Application of market value rule in case of exercise of option

      6. 144ZB. Exception to rule in section 144ZA

      7. 144ZC. Section 144ZB: non-commercial exercise of option

      8. 144ZD. Section 144ZB: alteration of value to obtain tax advantage

      9. 144A. Cash-settled options.

      10. 145. Call options: indexation allowance.

      11. 146. Options: application of rules as to wasting assets.

      12. 147. Quoted options treated as part of new holdings.

      13. 148. Traded options: closing purchases.

      14. 148A. Futures and options involving guaranteed returns

      15. 148B. Deemed disposals at a gain under section 564(4) of ITTOIA 2005

      16. 148C. Deemed disposals at a loss under section 564(4) of ITTOIA 2005

      17. 149. Rights to acquire qualifying shares.

      18. 149A. Employment-related securities options

      19. 149AA. Restricted and convertible employment-related securities and employee shareholder shares

      20. 149AB. Shares in research institution spin-out companies

      21. 149B. Employee incentive schemes: conditional interests in shares.

      22. 149C. Priority share allocations

      23. 150. Business expansion schemes.

      24. 150A. Enterprise investment scheme.

      25. 150B. Enterprise investment scheme: reduction of EIS relief.

      26. 150C. Enterprise investment scheme: re-investment.

      27. 150D. Enterprise investment scheme: application of taper relief

      28. 150E. Seed enterprise investment scheme

      29. 150F. Seed enterprise investment scheme: reduction of relief

      30. 150G. Seed enterprise investment scheme: re-investment

      31. 151. Personal equity plans.

      32. 151A. Venture capital trusts: reliefs.

      33. 151B. Venture capital trusts: supplementary.

      34. 151BA. CITR: identification of securities or shares on a disposal

      35. 151BB. CITR: rights issues etc

      36. 151BC. CITR: company reconstructions etc

      37. 151C. Strips: manipulation of price: associated payment giving rise to loss

      38. 151D. Corporate strips: manipulation of price: associated payment giving rise to loss

      39. 151E. Exchange gains and losses from loan relationships: regulations

      40. 151F. Treatment of alternative finance arrangements

      41. 151G. Regulations where non-qualifying shares conditions altered

   4. Chapter 4 Alternative finance arrangements

      1. Introduction

         1. 151H. Introduction

         2. 151I. Meaning of “financial institution”

      2. Arrangements that are alternative finance arrangements

         1. 151J. Purchase and resale arrangements

         2. 151K. Diminishing shared ownership arrangements

         3. 151L. Deposit arrangements

         4. 151M. Profit share agency arrangements

         5. 151N. Investment bond arrangements

         6. 151O. Provision not at arm's length: exclusion of arrangements from sections 151J to 151N

      3. Meaning of “alternative finance return”

         1. 151P. Purchase and resale arrangements

         2. 151Q. Purchase and resale arrangements where return in foreign currency

         3. 151R. Diminishing shared ownership arrangements

         4. 151S. Other arrangements

      4. Special rules for investment bond arrangements

         1. 151T. Investment bond arrangements are qualifying corporate bonds

         2. 151U. Treatment of bond-holder and bond-issuer

         3. 151V. Treatment as securities

         4. 151W. Investment bond arrangements not unit trust scheme or offshore fund

      5. Other rules

         1. 151X. Exclusion of some alternative finance return from sale consideration

         2. 151Y. Diminishing shared ownership arrangements not partnerships

6. Part V Transfer of business assets

   1. Chapter I General provisions

      1. Replacement of business assets

         1. 152. Roll-over relief.

         2. 153. Assets only partly replaced.

         3. 153A. Provisional application of sections 152 and 153.

         4. 154. New assets which are depreciating assets.

         5. 155. Relevant classes of assets.

         6. 156. Assets of Class 1.

         7. 156ZA. Intangible fixed assets: roll-over relief

         8. 156ZB. Intangible fixed assets: interaction with relief under Chapter 7 of Part 8 of CTA 2009

         9. 156A. Cessation of trade by limited liability partnership.

         10. 157. Trade carried on by family company: business assets dealt with by individual.

         11. 158. Activities other than trades, and interpretation.

         12. 159. Non-residents: roll-over relief.

         13. 159A. Non-resident CGT disposals: roll-over relief

         14. 160. Dual resident companies: roll-over relief.

      2. Stock in trade

         1. 161. Appropriations to and from stock.

      3. Transfer of business to a company

         1. 162. Roll-over relief on transfer of business.

         2. 162A. Election for section 162 not to apply

      4. Transfer of business from company to shareholders

         1. 162B. Disincorporation relief: assets (including pre-FA 2002 goodwill)

         2. 162C. Disincorporation relief: post-FA 2002 goodwill

      5. Retirement relief

         1. 163. Relief for disposals by individuals on retirement from family business.

         2. 164. Other retirement relief.

   2. Chapter IA Roll-over relief on re-investment

      1. 164A. Relief on re-investment for individuals.

      2. 164B. Roll-over relief on re-investment by trustees.

      3. 164BA. Interaction with retirement relief

      4. 164C. Restriction applying to retirement relief and roll-over relief on re-investment.

      5. 164D. Relief carried forward into replacement shares.

      6. 164E. Application of Chapter in cases of an exchange of shares.

      7. 164F. Failure of conditions of relief.

      8. 164FA. Loss of relief in cases where shares acquired on being issued.

      9. 164FF. Qualifying investment acquired from husband or wife.

      10. 164FG. Multiple claims.

      11. 164G. Meaning of “qualifying company".

      12. 164H. Property companies etc. not to be qualifying companies.

      13. 164I. Qualifying trades.

      14. 164J. Provisions supplementary to section 164I.

      15. 164K. Foreign residents.

      16. 164L. Anti-avoidance provisions.

      17. 164M. Exclusion of double relief.

      18. 164MA. Exclusion of double relief

      19. 164N. Interpretation of Chapter IA.

   3. Chapter II Gifts of business assets

      1. 165. Relief for gifts of business assets.

      2. 165A. Meaning of “holding company”, “trading company” and “trading group”

      3. 166. Gifts to non-residents.

      4. 167. Gifts to foreign-controlled companies.

      5. 167A. Gifts of UK residential property interests to non-residents

      6. 168. Emigration of donee.

      7. 168A. Deemed disposal of UK residential property interest under section 168

      8. 169. Gifts into dual resident trusts.

      9. 169A. Cessation of trade by limited liability partnership

      10. 169B. Gifts to settlor-interested settlements etc

      11. 169C. Clawback of relief if settlement becomes settlor-interested etc

      12. 169D. Exceptions to sections 169B and 169C

      13. 169E. Meaning of “settlor” in sections 169B to 169D and 169G

      14. 169F. Meaning of “interest in a settlement” in sections 169B to 169D

      15. 169G. Meaning of “arrangement” in sections 169B to 169E and information power

   4. Chapter 3 Entrepreneurs’ relief

      1. 169H. Introduction

      2. 169I. Material disposal of business assets

      3. 169J. Disposal of trust business assets

      4. 169K. Disposal associated with relevant material disposal

      5. 169L. Relevant business assets

      6. 169LA. Relevant business assets: goodwill transferred to a related party etc

      7. 169M. Relief to be claimed

      8. 169N. Amount of relief: general

      9. 169O. Amount of relief: special provisions for certain trust disposals

      10. 169P. Amount of relief: special provision for certain associated disposals

      11. 169Q. Reorganisations: disapplication of section 127

      12. 169R. Reorganisations involving acquisition of qualifying corporate bonds

      13. 169S. Interpretation of Chapter

   5. Chapter 4 Entrepreneurs' relief where held-over gains become chargeable

      1. 169T. Overview of Chapter

      2. 169U. Eligibility conditions for deferred entrepreneurs' relief

      3. 169V. Operation of deferred entrepreneurs' relief

7. Part VI Companies, oil, insurance etc.

   1. Chapter I Companies

      1. Groups of companies

         1. 170. Interpretation of sections 171 to 181.

      2. Transactions within groups

         1. 171. Transfers within a group: general provisions.

         2. 171A. Election to reallocate gain or loss to another member of the group

         3. 171B. Election under section 171A: effect

         4. 171C. Elections under section 171A: insurance companies

         5. 172. Transfer of United Kingdom branch or agency.

         6. 173. Transfers within a group: trading stock.

         7. 174. Disposal or acquisition outside a group.

         8. 175. Replacement of business assets by members of a group.

      3. Losses attributable to depreciatory transactions

         1. 176. Depreciatory transactions within a group.

         2. 177. Dividend stripping.

         3. 177A. Restriction on set-off of pre-entry losses.

      4. Pre-entry gains

         1. 177B. Restrictions on setting losses against pre-entry gains.

      5. Companies leaving groups

         1. 178. Company ceasing to be member of group: pre-appointed day cases.

         2. 179. Company ceasing to be member of group: post-appointed day cases.

         3. 179ZA. Claim for adjustment of calculations under section 179

         4. 179A. Reallocation within group of gain or loss accruing under section 179

         5. 179B. Roll-over of degrouping charge on business assets

         6. 180. Transitional provisions.

         7. 181. Exemption from charge under 178 or 179 in the case of certain mergers.

      6. Restriction on indexation allowance for groups and associated companies

         1. 182. Disposals of debts.

         2. 183. Disposals of shares.

         3. 184. Definitions and other provisions supplemental to sections 182 and 183.

      7. Restrictions on buying losses or gains etc

         1. 184A. Restrictions on buying losses: tax avoidance schemes

         2. 184B. Restrictions on buying gains: tax avoidance schemes

         3. 184C. Sections 184A and 184B: meaning of “qualifying change of ownership”

         4. 184D. Sections 184A and 184B: meaning of “tax advantage”

         5. 184E. Sections 184A and 184B: “pre-change assets”: basic rules

         6. 184F. Sections 184A and 184B: “pre-change assets”: pooling rules

         7. 184G. Avoidance involving losses: schemes converting income to capital

         8. 184H. Avoidance involving losses: schemes securing deductions

         9. 184I. Notices under sections 184G and 184H

      8. Non-resident and dual resident companies

         1. 185. Deemed disposal of assets on company ceasing to be resident in U.K.

         2. 186. Deemed disposal of assets on company ceasing to be liable to U.K. taxation.

         3. 187. Postponement of charge on deemed disposal under section 185 or 186.

         4. 187A. Deemed disposal under section 185: ATED-related gains and losses

         5. 187B. Deemed disposal of UK residential property interest under section 185

         6. 188. Dual resident companies: deemed disposal of certain assets.

      9. Pooling of NRCGT gains and losses

         1. 188A. Election for pooling

         2. 188B. Meaning of “NRCGT group”

         3. 188C. Transfers within an NRCGT group

         4. 188D. Person chargeable to capital gains tax on NRCGT gains accruing to members of an NRCGT group

         5. 188E. Further provision about group losses

         6. 188F. Companies becoming eligible to join an NRCGT group

         7. 188G. Company ceasing to be a member of an NRCGT group

         8. 188H. The responsible members of an NRCGT group

         9. 188I. Joint and several liability of responsible members

         10. 188J. The representative company of an NRCGT group

         11. 188K. Interpretation of sections 188A to 188J

      10. Recovery of tax otherwise than from tax-payer company

          1. 189. Capital distribution of chargeable gains: recovery of tax from shareholder.

          2. 190. Tax recoverable from another group company or controlling director.

      11. Demergers

          1. 192. Tax exempt distributions.

      12. Disposals by companies with substantial shareholding

          1. 192A. Exemptions for gains or losses on disposal of shares etc

   2. Chapter II Oil and mining industries

      1. Oil exploration and exploitation

         1. 193. Roll-over relief not available for gains on oil licences.

         2. 194. Disposals of oil licences relating to undeveloped areas.

         3. 195. Allowance of certain drilling expenditure etc.

         4. 195A. Oil licence swaps

         5. 195B. Licence-consideration swap

         6. 195C. Company that receives mixed consideration: N exceeds C

         7. 195D. Company that receives mixed consideration: N does not exceed C

         8. 195E. Company that gives mixed consideration

         9. 195F. Reimbursed expenditure

         10. 196. Interpretation of sections 194 to 195F .

         11. 197. Disposals of interests in oil fields etc: ring fence provisions.

         12. 198. Replacement of business assets used in connection with oil fields.

         13. 198A. Ring fence reinvestment: whole consideration reinvested

         14. 198B. Ring fence reinvestment: part of consideration reinvested

         15. 198C. Provisional application of sections 198A and 198B

         16. 198D. No double claims

         17. 198E. Ring fence reinvestments and disposal consideration

         18. 198F. Qualification for roll-over relief

         19. 198G. Qualification for section 153 relief

         20. 198H. Acquisition by member of same group

         21. 198I. Exploration, appraisal and development expenditure

         22. 198J. Oil and gas: reinvestment after pre-trading disposal

         23. 198K. Provisional application of section 198J

         24. 198L. Expenditure by member of same group

         25. 199. Exploration or exploitation assets: deemed disposals

         26. 200. Limitation of losses on disposal of oil industry assets held on 31st March 1982.

      2. Mineral leases

         1. 201. Royalties.

         2. 202. Capital losses.

         3. 203. Provisions supplementary to section 202 .

   3. Chapter III Insurance

      1. 204. Policies of insurance and non-deferred annuities

      2. 205. Disallowance of insurance premiums as expenses.

      3. 206. Underwriters.

      4. 207. Disposal of assets in premiums trust fund

      5. 208. Premiums trust funds: indexation.

      6. 209. Interpretation, regulations about underwriters

      7. 210. Life assurance and deferred annuities.

      8. 210A. Ring-fencing of losses

      9. 210B. Disposal and acquisition of section 119 or 120 securities

      10. 210C. Losses on disposal of authorised investment fund assets to connected manager

      11. 211. Transfers of business.

      12. 211ZA. Transfers of business: transfer of unused losses

      13. 211A. Gains of insurance company from venture capital investment partnership

      14. 211B. Transfers of assets to certain collective investment schemes

      15. 212. Annual deemed disposal of holdings of unit trusts etc.

      16. 213. Spreading of gains and losses under section 212.

      17. 213A. Power to modify ss. 212 and 213 etc in case of CFCs that are offshore funds

      18. 214. Transitional provisions.

      19. 214A. Further transitional provisions.

      20. 214B. Modification of Act in relation to overseas life insurance companies.

      21. 214BA. Interpretation

   4. Chapter IV Miscellaneous cases

      1. ...

         1. 214C. Gains not eligible for taper relief.

      2. Building societies etc.

         1. 215. Disposal of assets on amalgamation of building societies etc.

         2. 216. Assets transferred from society to company.

         3. 217. Shares, and rights to shares, in successor company.

      3. Friendly societies

         1. 217A. Transfer of assets on incorporation of registered friendly society.

         2. 217B. Rights of members in registered society equated with rights in incorporated society.

         3. 217C. Subsequent disposal of assets by incorporated society etc.

      4. Registered societies and co-operatives

         1. 217D. Disposal of assets on union, amalgamation or transfer of engagements

      5. The Regulator of Social Housing, the Secretary of State and housing associations

         1. 218. Disposals of land between the Regulator of Social Housing, the Secretary of State or Scottish Homes and housing associations.

         2. 219. Disposals by housing related bodies.

         3. 220. Disposals by Northern Ireland housing associations.

      6. Other bodies

         1. 221. Harbour authorities.

8. Part VII Other property, businesses, investments etc.

   1. Private residences

      1. 222. Relief on disposal of private residence.

      2. 222A. Determination of main residence: non-resident CGT disposals

      3. 222B. Non-qualifying tax years

      4. 222C. Day count test

      5. 223. Amount of relief.

      6. 223A. Amount of relief: non-resident CGT disposals

      7. 224. Amount of relief: further provisions.

      8. 225. Private residence occupied under terms of settlement.

      9. 225A. Private residence held by personal representatives

      10. 225B. Disposals in connection with divorce, etc

      11. 225C. Sale of private residence under certain agreements with employer, etc

      12. 225D. Private residence of adult placement carer

      13. 225E. Disposals by disabled persons or persons in care homes etc

      14. 226. Private residence occupied by dependent relative before 6th April 1988.

      15. 226A. Private residence relief: cases where relief obtained under section 260

      16. 226B. Exception to section 226A

   2. Employee share ownership trusts

      1. 227. Conditions for roll-over relief.

      2. 228. Conditions for relief: supplementary.

      3. 229. The relief.

      4. 230. Dwelling-houses: special provision.

      5. 231. Shares: special provision.

      6. 232. Chargeable event when replacement assets owned.

      7. 233. Chargeable event when replacement property owned.

      8. 234. Chargeable events when bonds owned.

      9. 235. Information.

      10. 236. Prevention of double charge.

   3. Share incentive plans

      1. 236A. Relief for transfers to share incentive plans

   4. Employee shareholders

      1. 236B. Exemption for employee shareholder shares

      2. 236C. Only first £50,000 of shares under associated agreements to be exempt

      3. 236D. Shares not exempt if shareholder or connected person has material interest in company

      4. 236E. Identification of exempt employee shareholder shares

      5. 236F. Reorganisation of share capital involving employee shareholder shares

      6. 236G. Relinquishment of employment rights is not disposal of an asset

   5. Employee-ownership trusts

      1. 236H. Disposals to employee-ownership trusts

      2. 236I. Trading requirement

      3. 236J. All-employee benefit requirement

      4. 236K. Further provision about the equality requirement

      5. 236L. Cases in which all-employee benefit requirement treated as met

      6. 236M. Controlling interest requirement

      7. 236N. Limited participation requirement

      8. 236O. No section 236H relief if disqualifying event in next tax year

      9. 236P. Events which trigger deemed disposal and reacquisition by trustees

      10. 236Q. Relief for deemed disposals under section 71

      11. 236R. No section 236Q relief if disqualifying event in next tax year

      12. 236S. Identification of shares where section 236H or 236Q applies

      13. 236T. Further provision about significant and controlling interests

      14. 236U. Interpretation of sections 236H to 236U

   6. Superannuation funds, profit sharing schemes, employee trusts etc.

      1. 237. Superannuation funds, annuities and annual payments.

      2. 237A. Share option schemes: release and replacement of options.

      3. 238. Approved profit sharing and share option schemes.

      4. 238A. ... Share schemes and share incentives

      5. 239. Disposals to trustees of employee trusts

      6. 239ZA. Relief for disposals by trustees of employee trusts

   7. Registered pension schemes

      1. 239A. De-registration of registered pension schemes

   8. Leases

      1. 240. Leases of land and other assets.

      2. 241. UK furnished holiday lettings.

      3. 241A. EEA furnished holiday lettings

   9. Part disposals

      1. 242. Small part disposals.

      2. 243. Part disposal to authority with compulsory powers.

      3. 244. Part disposal: consideration exceeding allowable expenditure.

   10. Compulsory acquisition

       1. 245. Compensation paid on compulsory acquisition.

       2. 246. Time of disposal and acquisition.

       3. 247. Roll-over relief on compulsory acquisition.

       4. 247A. Provisional application of section 247.

       5. 248. Provisions supplementary to section 247.

   11. Joint interests in land

       1. 248A. Roll-over relief on disposal of joint interests in land: conditions

       2. 248B. Calculation of relief

       3. 248C. Excluded land

       4. 248D. Milk quotas

       5. 248E. Relief on disposal of joint interests in private residence

   12. Woodlands

       1. 249. Grants for giving up agricultural land.

       2. 250. Woodlands.

   13. Debts

       1. 251. General provisions.

       2. 252. Foreign currency bank accounts.

       3. 252A. Foreign currency bank accounts and the remittance basis

       4. 253. Relief for loans to traders.

       5. 254. Relief for debts on qualifying corporate bonds.

       6. 255. Provisions supplementary to section 254.

   14. Investments in social enterprises

       1. 255A. Hold-over relief for gains re-invested in social enterprises

       2. 255B. Gains and losses on investments in social enterprises

       3. 255C. Application of section 255B(2) where maximum SI relief not obtained

       4. 255D. Application of section 255B(2) where SI relief has been reduced

       5. 255E. Reorganisations involving shares to which SI relief is attributable

   15. Charities and gifts of non-business assets etc.

       1. 256. Charities.

       2. 256A. Attributing gains to the non-exempt amount: charitable trusts

       3. 256B. How gains are attributed to the non-exempt amount: charitable trusts

       4. 256C. Attributing gains to the non-exempt amount: charitable companies

       5. 256D. How gains are attributed to the non-exempt amount: charitable companies

       6. 257. Gifts to charities etc.

       7. 257A. Tainted charity donations

       8. 258. Works of art etc.

       9. 259. Gifts to housing associations.

       10. 260. Gifts on which inheritance tax is chargeable etc.

       11. 261. Section 260 relief: gifts to non-residents.

       12. 261ZA. Gifts of UK residential property interests to non-residents

   16. Know-how

       1. 261A. Disposal of know-how as part of disposal of all or part of a trade

   17. Deduction of trading losses or post-cessation expenditure etc

       1. 261B. Treating trade loss etc as CGT loss

       2. 261C. Meaning of “the maximum amount” for purposes of section 261B

       3. 261D. Treating excess post-cessation trade or property relief as CGT loss

       4. 261E. Meaning of “the maximum amount” for purposes of section 261D

   18. Repurchase price under repos

       1. 261F. Deemed manufactured payments: effect on repurchase price

       2. 261G. Price differences under repos: effect on repurchase price

       3. 261H. Power to modify section 261G in non-arm's length case

   19. Miscellaneous reliefs and exemptions

       1. 262. Chattel exemption.

       2. 263. Passenger vehicles.

       3. 263AZA. Renewables obligation certificates for domestic microgeneration

       4. 263ZA. Former employees: employment-related liabilities

       5. 263A. Agreements for sale and repurchase of securities: capital gains tax

       6. 263AA. Section 263A: interpretation

       7. 263B. Stock lending arrangements.

       8. 263C. Stock lending involving redemption.

       9. 263CA. Stock lending: insolvency etc of borrower

       10. 263D. Gains accruing to persons paying manufactured dividends

       11. 263E. Structured finance arrangements

       12. 263F. Power to modify repo provisions: non-standard repo cases

       13. 263G. Power to modify repo provisions: redemption arrangements

       14. 263H. Sections 263F and 263G: supplementary provisions

       15. 263I. Powers about manufactured overseas dividends

       16. 264. Relief for local constituency associations of political parties on reorganisation of constituencies.

       17. 265. Designated international organisations.

       18. 266. Inter-American Development Bank.

       19. 267. Sharing of transmission facilities.

       20. 268. Decorations for valour or gallant conduct.

       21. 268A. Victims of National-Socialist persecution

       22. 268B. Compensation for deprivation of foreign assets

       23. 269. Foreign currency for personal expenditure.

       24. 270. Chevening Estate.

       25. 271. Other miscellaneous exemptions.

9. Part 7A UK representatives of non-UK residents

   1. Chapter 1 Treatment of branch or agency as UK representative of non-UK resident

      1. Introduction

         1. 271A. Overview of Chapter

      2. Branches and agencies

         1. 271B. Branch or agency treated as UK representative

         2. 271C. Trade or profession carried on in partnership

         3. 271D. Interpretation of Chapter

   2. Chapter 2 Capital gains tax obligations and liabilities imposed on UK representatives

      1. 271E. Introduction to Chapter

      2. 271F. Obligations and liabilities of UK representative

      3. 271G. Exceptions: notices and information

      4. 271H. Exceptions: criminal offences and penalties etc

      5. 271I. Indemnities

      6. 271J. Meaning of “non-UK resident” and “independent agent”

10. Part VIII Supplemental

    1. 272. Valuation: general.

    2. 273. Unquoted shares and securities.

    3. 274. Value determined for inheritance tax.

    4. 275. Location of assets.

    5. 275A. Location of certain intangible assets

    6. 275B. Section 275A: supplementary provisions

    7. 275C. Location of assets: interests of co-owners

    8. 276. The territorial sea and the continental shelf.

    9. 276A. No gain/no loss: foreign permanent establishment exemption

    10. 277. Double taxation relief.

    11. 278. Allowance for foreign tax.

    12. 279. Foreign assets: delayed remittances.

    13. 279A. Deferred unascertainable consideration: election for treatment of loss

    14. 279B. Provisions supplementary to section 279A

    15. 279C. Effect of election under section 279A

    16. 279D. Elections under section 279A

    17. 280. Consideration payable by instalments.

    18. 281. Payment by instalments of tax on gifts.

    19. 282. Recovery of tax from donee.

    20. 283. Repayment supplements.

    21. 284. Income tax decisions.

    22. 284A. Concessions that defer a charge.

    23. 284B. Provisions supplementary to section 284A.

    24. 285. Recognised investment exchanges.

    25. 285A. European Economic Interest Groupings

    26. 286. Connected persons: interpretation.

    27. 286A. Residence of companies

    28. 287. Orders and regulations made by the Treasury or the Board.

    29. 288. Interpretation.

    30. 289. Commencement.

    31. 290. Savings, transitionals, consequential amendments and repeals.

    32. 291. Short title.

11. SCHEDULES

    1. SCHEDULE A1

       Application of taper relief

       1. Introductory

          1. 1. . . . . . . . . . ....

       2. Period for which an asset is held and relevant period of ownership

          1. 2. . . . . . . . . . ....

       3. Rules for determining whether a gain is a gain on the disposal of a business asset or non-business asset

          1. 3. . . . . . . . . . ....

       4. Conditions for shares to qualify as business assets

          1. 4. . . . . . . . . . ....

       5. Conditions for other assets to qualify as business assets

          1. 5. . . . . . . . . . ....

       6. Companies which are qualifying companies

          1. 6. . . . . . . . . . ....

       7. Meaning of “material interest”

          1. 6A. . . . . . . . . . ....

       8. Persons who are eligible beneficiaries

          1. 7. . . . . . . . . . ....

       9. Cases where there are non-qualifying beneficiaries

          1. 8. . . . . . . . . . ....

       10. Cases where an asset is used at the same time for different purposes

           1. 9. . . . . . . . . . ....

       11. Periods of limited exposure to fluctuations in value not to count

           1. 10. . . . . . . . . . ....

       12. Periods of share ownership not to count where there is a change of activity by the company

           1. 11. . . . . . . . . . ....

       13. Periods of share ownership not to count if company is not active

           1. 11A. . . . . . . . . . ....

       14. Periods of share ownership not to count in a case of value shifting

           1. 12. . . . . . . . . . ....

       15. Rules for options

           1. 13. . . . . . . . . . ....

       16. Further rules for assets derived from other assets

           1. 14. . . . . . . . . . ....

       17. Special rules for assets transferred between spouses or civil partners

           1. 15. . . . . . . . . . ....

       18. Special rules for postponed gains

           1. 16. . . . . . . . . . ....

       19. Special rule for property settled by a company

           1. 17. . . . . . . . . . ....

       20. Special rules for assets acquired in the reconstruction of mutual businesses et ceteralaetc.

           1. 18. . . . . . . . . . ....

       21. Special rule for ancillary trust funds

           1. 19. . . . . . . . . . ....

       22. General rules for settlements

           1. 20. . . . . . . . . . ....

       23. General rule for apportionments under this Schedule

           1. 21. . . . . . . . . . ....

       24. Interpretation of Schedule

           1. 22. . . . . . . . . . ....

       25. Meaning of “trading company”

           1. 22A. . . . . . . . . . ....

       26. Meaning of “trading group”

           1. 22B. . . . . . . . . . ....

       27. Qualifying shareholdings in joint venture companies

           1. 23. . . . . . . . . . ....

       28. Joint enterprise companies: relevant connection

           1. 24. . . . . . . . . . ....

    2. SCHEDULE B1

       Disposals of UK residential property interests

       1. Meaning of “disposal of a UK residential property interest”

          1. 1. (1) For the purposes of this Act, the disposal by...

       2. “Interest in UK land”

          1. 2. (1) In this Schedule, “ interest in UK land ”...

       3. Grants of options

          1. 3. (1) Sub-paragraph (2) applies where— (a) a person (“P”) grants...

       4. Meaning of “dwelling”

          1. 4. (1) For the purposes of this Schedule, a building counts...

       5. Power to modify meaning of “use as a dwelling”

          1. 5. (1) The Treasury may by regulations amend paragraph 4 for...

       6. Damage to a dwelling

          1. 6. (1) Sub-paragraph (2) applies where a person disposes of an...

       7. Demolition of a building

          1. 7. A building is regarded as ceasing to exist from the...

       8. Disposal of a building that has undergone works

          1. 8. (1) This paragraph applies where a person disposes of an...

       9. Retrospective planning permission or development consent

          1. 9. (1) The condition in paragraph 8(4)(b) is taken to have...

       10. Interpretation

           1. 10. (1) For the purposes of this Schedule, the “completion” of...

    3. SCHEDULE C1

       Section 14F: meaning of “closely-held company” and “widely-marketed scheme”

       1. PART 1 Meaning of “closely-held company”

          1. Introduction

             1. 1. This Part of this Schedule sets out the rules for...

          2. Main definition

             1. 2. (1) “ Closely-held company ” means a company in relation...

             2. 3. (1) This paragraph applies for the purposes of paragraph 2(3)....

             3. 4. (1) This paragraph applies for the purpose of determining whether,...

             4. 5. (1) A company is not to be treated as a...

             5. 6. (1) Sub-paragraph (2) applies where a participator in a company...

          3. Meaning of “control”

             1. 7. (1) For the purposes of this Schedule, a person (“P”)...

             2. 8. (1) This paragraph applies for the purposes of paragraph 7....

          4. Interpretation

             1. 9. In this Part of this Schedule— “ diversely-held company ”...

       2. PART 2 Unit trust schemes and OEICs: widely-marketed schemes

          1. Introduction

             1. 10. (1) This Part of this Schedule sets out the rules...

          2. Widely-marketed schemes

             1. 11. (1) A scheme is a widely-marketed scheme at any time...

          3. Interpretation

             1. 12. In this Part of this Schedule— “ open-ended investment company...

    4. SCHEDULE 1

       Application of exempt amount and reporting limits in cases involving settled property

       1. A1. (1) In determining the exempt amount available to the trustees...

       2. 1. (1) For any year of assessment during the whole or...

       3. 2. (1) For any year of assessment during the whole or...

       4. 3. (1) The exempt amount available in relation to a year...

    5. SCHEDULE 2

       Assets held on 6th April 1965

       1. Part I Quoted securities

          1. Deemed acquisition at 6th April 1965 value

             1. 1. (1) This paragraph applies— (a) to shares and securities which...

          2. Restriction of gain or loss by reference to actual cost

             1. 2. (1) Subject to paragraph 4 below and section 109(4), paragraph...

             2. 3. (1) Where— (a) a disposal was made out of quoted...

          3. Election for pooling

             1. 4. (1) This paragraph applies in relation to quoted securities as...

          4. Election by principal company of group

             1. 5. (1) In the case of companies which at the relevant...

          5. Pooling at value on 6th April 1965: exchange of securities etc.

             1. 6. (1) Where a person who has made only one of...

          6. Underwriters

             1. 7. No election under paragraph 4 above shall cover quoted securities...

          7. Interpretation of paragraphs 3 to 7

             1. 8. (1) In paragraphs 3 to 7 above— “quoted securities” means...

       2. Part II Land reflecting development value

          1. 9. (1) Subject to paragraph 17(2) of Schedule 11, this Part...

          2. 10. (1) For the purposes of this Part of this Schedule,...

          3. 11. (1) The current use value of an interest in land...

          4. 12. In computing any gain accruing to a person on a...

          5. 13. (1) In this Part of this Schedule, “material development”, in...

          6. 14. (1) For the purposes of this Part, material development shall...

          7. 15. In this Part of this Schedule, unless the context otherwise...

       3. Part III Other assets

          1. Apportionment by reference to straightline growth of gain or loss over period of ownership

             1. 16. (1) This paragraph applies subject to Parts I and II...

          2. Election for valuation at 6th April 1965

             1. 17. (1) If the person making a disposal so elects, paragraph...

          3. Unquoted shares, commodities etc.

             1. 18. (1) This paragraph has effect as respects shares held by...

          4. Reorganisation of share capital, conversion of securities etc.

             1. 19. (1) For the purposes of this Act, it shall be...

       4. Part IV Miscellaneous

          1. Capital allowances

             1. 20. If under any provision in this Schedule it is to...

          2. Assets transferred to close companies

             1. 21. (1) This paragraph has effect where— (a) at any time,...

          3. Spouses and civil partners

             1. 22. Where section 58 is applied in relation to a disposal...

          4. Compensation and insurance money

             1. 23. Where section 23(4)(a) applies to exclude a gain which, in...

    6. SCHEDULE 3

       Assets held on 31st March 1982

       1. Previous no gain/no loss disposals

          1. 1. (1) For the purposes of corporation tax, where—

          2. 1A. (1) This paragraph applies where— (a) paragraph 1(1) applies to...

          3. 2. (1) Sub-paragraph (2) below applies where a person makes a...

       2. Capital allowances

          1. 3. If under section 35 it is to be assumed that...

       3. Part disposals etc.

          1. 4. (1) Where, in relation to a disposal to which section...

       4. Assets derived from other assets

          1. 5. Section 35 shall have effect with the necessary modifications in...

       5. Apportionment of pre-1965 gains and losses

          1. 6. In a case where because of paragraph 16 of Schedule...

       6. Elections under section section 35(5): excluded disposals

          1. 7. (1) An election under section 35(5) shall not cover disposals...

       7. Elections under section 35(5): groups of companies

          1. 8. (1) A company may not make an election under section...

          2. 9. (1) In paragraph 8 above “the relevant time”, in relation...

    7. SCHEDULE 4

       Deferred charges on gains before 31st March 1982

       1. Application of Schedule

          1. A1. This Schedule applies only for the purposes of corporation tax....

       2. Reduction of deduction or gain

          1. 1. Where this Schedule applies— (a) in a case within paragraph...

       3. Charges rolled-over or held-over

          1. 2. (1) Subject to sub-paragraphs (2) to (4) below, this Schedule...

          2. 3. (1) This paragraph applies where this Schedule would have applied...

       4. Postponed charges

          1. 4. (1) Subject to sub-paragraphs (3) to (5) below, this Schedule...

       5. Previous no gain/no loss disposals

          1. 5. Where— (a) a person makes a disposal of an asset...

          2. 6. (1) Sub-paragraph (2) below applies where— (a) a person makes...

          3. 7. For the purposes of this Schedule a no gain/no loss...

       6. Assets derived from other assets

          1. 8. The references in paragraphs 2(1)(c) and 4(1)(b) above to the...

       7. Claims

          1. 9. (1) No relief shall be given under this Schedule unless...

    8. SCHEDULE 4ZZA

       Relevant high value disposals: gains and losses

       1. Introductory

          1. 1. (1) This Schedule applies for the purposes of determining in...

       2. Assets held on 5 April 2013, 5 April 2015 or 5 April 2016: no paragraph 5 election

          1. 2. (1) In Cases 1 to 3 below—

          2. 3. (1) An amount equal to the relevant fraction of the...

          3. 4. (1) The gain or loss accruing on the relevant high...

       3. Election for paragraph 2 to 4 not to apply to a chargeable interest

          1. 5. (1) A person may make an election under this paragraph...

       4. Cases where election made or or none of Cases 1 to 3 apply

          1. 6. (1) This paragraph applies if— (a) an election is made...

       5. Special rule for certain disposals to which both this Schedule and Schedule 4ZZB relate

          1. 6A. (1) This paragraph applies where conditions A and B are...

       6. Adjustments of ATED chargeable days

          1. 7. (1) This paragraph applies where, as a result of a...

       7. Wasting assets

          1. 8. (1) Sub-paragraph (2) applies where it is necessary, in computing...

       8. Capital allowances

          1. 9. (1) Sub-paragraph (2) applies where it is to be assumed...

    9. SCHEDULE 4ZZB

       Non-resident CGT disposals: gains and losses

       1. PART 1 Introduction

          1. 1. (1) This Schedule applies for the purpose of determining, in...

       2. PART 2 Elections for alternative methods of computation

          1. 2. (1) A person (“P”) making a non-resident CGT disposal of...

          2. 3. (1) An election under paragraph 2(1) is irrevocable (and where...

       3. PART 3 Main computation rules

          1. Disposals to which this Part applies

             1. 4. (1) This Part of this Schedule applies where a person...

          2. Introduction to paragraphs 6 to 8

             1. 5. (1) Paragraphs 6 to 8 apply where—

          3. Assets held at 5 April 2015: default method

             1. 6. (1) The NRCGT gain or loss accruing on the disposal...

             2. 7. The gain or loss accruing on the disposal which is...

          4. Modified application of paragraphs 5 to 7 where election made for straight-line time apportionment

             1. 8. (1) Where the non-resident CGT disposal is of (or of...

          5. Cases where asset acquired after 5 April 2015 or election made under paragraph 2(1)(b)

             1. 9. (1) This paragraph applies if— (a) the disposed of interest...

          6. Interest subsisting under contract for off-plan purchase

             1. 10. (1) Sub-paragraph (2) applies where the non-resident CGT disposal referred...

       4. PART 4 Cases involving relevant high value disposals

          1. Overview

             1. 11. (1) This Part is about non-resident CGT disposals which are,...

          2. Disposal involving one or more relevant high value disposals

             1. 12. (1) This Part of this Schedule applies where—

          3. Assets held at 5 April 2015 (where no election made and no rebasing in 2016 required)

             1. 13. (1) This paragraph applies where— (a) the disposed of interest...

          4. Asset acquired after 5 April 2015 or election made under paragraph 2(1)(b) (but no rebasing in 2016 required)

             1. 14. (1) This paragraph applies where— (a) P makes, or has...

          5. Certain disposals after 5 April 2016 (computation involving additional rebasing in 2016)

             1. 15. (1) This paragraph applies where— (a) the disposed of interest...

          6. Amount of gain or loss that is neither ATED-related nor an NRCGT gain or loss

             1. 16. (1) The gain or loss on the disposal of land...

             2. 17. (1) This paragraph applies in relation to a relevant high...

             3. 18. (1) In the case of a relevant high value disposal...

             4. 19. (1) The amount of the balancing gain or loss on...

          7. Where relevant high value disposal and “other” disposal are comprised in the disposal of land

             1. 20. (1) This paragraph applies where the disposals comprised in the...

          8. Interest subsisting under contract for off-plan purchase

             1. 21. (1) Sub-paragraph (2) applies where the non-resident CGT disposal made...

       5. PART 5 Special rules for companies

          1. 22. This Part of this Schedule applies where the person making...

          2. Indexation

             1. 23. The following amounts are computed as if the computation were...

       6. PART 6 Miscellaneous provisions

          1. Wasting assets

             1. 24. (1) Sub-paragraph (2) applies where it is necessary, for the...

          2. Capital allowances

             1. 25. (1) Sub-paragraph (2) applies where it is to be assumed...

       7. PART 7 Interpretation

          1. 26. In this Schedule— “ chargeable interest ” has the same...

    10. SCHEDULE 4ZA

        Sub-fund settlements

        1. Making a sub-fund election

           1. 1. The trustees of a settlement (the “principal settlement”) may elect...

           2. 2. (1) An election under paragraph 1 (a “sub-fund election”) must...

           3. 3. Trustees may make a sub-fund election only if—

           4. 4. Condition 1 is that the principal settlement is not itself...

           5. 5. Condition 2 is that the sub-fund is not the whole...

           6. 6. Condition 3 is that, if the sub-fund election had taken...

           7. 7. For the purpose of Condition 3— (a) section 104(1) shall...

           8. 8. Condition 4 is that, if the sub-fund election had taken...

           9. 9. (1) For the purpose of Condition 4 a person is...

        2. Sub-fund elections: procedure

           1. 10. A sub-fund election must be made— (a) by notice to...

           2. 11. A sub-fund election may not be made after the second...

           3. 12. A sub-fund election must contain— (a) a declaration by each...

           4. 13. A sub-fund election may not be revoked.

        3. Power to make enquiries

           1. 14. Where a sub-fund election has been made, an officer of...

           2. 15. The notice shall specify a period of not less than...

           3. 16. (1) The persons mentioned in paragraph 14 are—

        4. Consequences of a sub-fund election

           1. 17. The sub-fund settlement shall be treated, for the purposes of...

           2. 18. (1) Each trustee of the trusts on which the property...

           3. 19. The trustees of the sub-fund settlement shall be treated for...

           4. 20. (1) A deemed disposal by the trustees of the principal...

           5. 21. If the trustees of the sub-fund settlement are treated by...

           6. 22. (1) If the trustees of the principal settlement are deemed...

    11. SCHEDULE 4A

        Disposal of interest in settled property: deemed disposal of underlying assets

        1. Circumstances in which this Schedule applies

           1. 1. This Schedule applies where there is a disposal of an...

        2. Meaning of “interest in settled property”

           1. 2. (1) For the purposes of this Schedule an “interest in...

        3. Meaning of “for consideration”

           1. 3. (1) For the purposes of this Schedule a disposal is...

        4. Deemed disposal of underlying assets

           1. 4. (1) Where this Schedule applies and the following conditions are...

        5. Condition as to UK residence of trustees

           1. 5. (1) The condition as to UK residence of the trustees...

        6. Condition as to UK residence of settlor

           1. 6. (1) The condition as to UK residence of the settlor...

        7. Condition as to settlor interest in the settlement

           1. 7. (1) The condition as to settlor interest in the settlement...

        8. The relevant underlying assets

           1. 8. (1) Where the interest disposed of is a right in...

        9. Character of deemed disposal

           1. 9. (1) The deemed disposal shall be taken—

        10. Avoidance of double-counting

            1. 10. (1) The provisions of this paragraph have effect to prevent...

        11. Recovery of tax from person disposing of interest

            1. 11. (1) This paragraph applies where chargeable gains accrue to the...

        12. Meaning of “settlor”

            1. 12. The provisions of paragraphs 7 and 8(1), (3), (6) and...

        13. Cases where there is a period between the beginning of the disposal and its effective completion

            1. 13. (1) This paragraph applies in a case where there is...

        14. Exception: maintenance funds for historic buildings

            1. 14. If the trustees of a settlement have elected that 508...

    12. SCHEDULE 4B

        Transfers of value by trustees linked with trustee borrowing

        1. General scheme of this Schedule

           1. 1. (1) This Schedule applies where trustees of a settlement—

        2. Transfers of value

           1. 2. (1) For the purposes of this Schedule trustees of a...

        3. Settlements within section ... 86 or 87

           1. 3. (1) This paragraph explains what is meant in this Schedule...

        4. Trustee borrowing

           1. 4. (1) For the purposes of this Schedule trustees of a...

        5. Transfer of value linked with trustee borrowing

           1. 5. (1) For the purposes of this Schedule a transfer of...

        6. Application of proceeds of borrowing for normal trust purposes

           1. 6. (1) For the purposes of this Schedule the proceeds of...

        7. Ordinary trust assets

           1. 7. (1) The following are “ordinary trust assets” for the purposes...

        8. The alternative condition for assets no longer part of the settled property

           1. 8. (1) The alternative condition referred to in paragraph 6(2)(b) in...

        9. Normal trust purposes: power to make provision by regulations

           1. 9. (1) The Treasury may make provision by regulations as to...

        10. Deemed disposal of remaining chargeable assets

            1. 10. (1) Where in accordance with this Schedule a transfer of...

        11. Whether deemed disposal is of whole or a proportion of the assets

            1. 11. (1) This paragraph provides for determining whether the deemed disposal...

        12. Value attributable to trustee borrowing

            1. 12. (1) For the purposes of this Schedule the value of...

        13. Assets and transfers

            1. 13. (1) In this Schedule any reference to an asset includes...

    13. SCHEDULE 4C

        Transfers of value: attribution of gains to beneficiaries

        1. Introduction

           1. 1. (1) This Schedule applies where the trustees of a settlement...

        2. Outstanding section 2(2) amounts

           1. 1A. (1) The following steps are to be taken for the...

        3. Computation of Schedule 4B trust gains

           1. 3. (1) This paragraph explains what is meant for the purposes...

        4. Chargeable amount: non-resident settlement

           1. 4. (1) If the transfer of value is made in a...

        5. Chargeable amount: dual resident settlement

           1. 5. (1) If the transfer of value is made in a...

        6. Gains attributed to settlor

           1. 6. (1) For the purposes of this Schedule the chargeable amount...

        7. Reduction for allowable losses

           1. 7. (1) An allowable loss arising under Schedule 4B in relation...

        8. 1. 7A. . . . . . . . . . ....

        9. Gains to be brought into pool on subsequent transfer of value

           1. 7B. (1) This paragraph applies if the trustees of the transferor...

        10. Attribution of Schedule 4C gains to beneficiaries

            1. 8. (1) Chargeable gains are treated as accruing in a tax...

        11. Relevant settlements

            1. 8A. (1) This paragraph specifies what settlements are relevant settlements in...

        12. Attribution of gains: remittance basis

            1. 8AA. Section 87B (remittance basis) applies in relation to chargeable gains...

        13. Attribution of gains in Schedule 4C pool

            1. 8B. (1) The following rules apply as regards the attribution of...

        14. Attribution of gains: Schedule 4C pool gains and other gains

            1. 8C. (1) Where in a year of assessment—

        15. Attribution of gains: disregard of certain capital payments

            1. 9. (1) For the purposes of paragraph 8 (and section 87A...

        16. Residence of trustees from whom capital payment received

            1. 10. (1) Subject to paragraph 9(3) , it is immaterial for...

        17. Taper relief

            1. 11. Without prejudice to so much of this Schedule as requires...

        18. Attribution of gains to settlor in section 10A cases

            1. 12. (1) This paragraph applies if— (a) by virtue of section...

        19. Attribution of gains to beneficiaries in section 10A cases

            1. 12A. (1) This paragraph applies where by virtue of section 10A...

        20. Increase in tax payable under this Schedule

            1. 13. (1) This paragraph applies if— (a) chargeable gains are treated...

        21. Effect of settlement ceasing to exist after transfer of value

            1. 13A. Where a settlement ceases to exist after the trustees have...

        22. Interpretation

            1. 14. (1) In this Schedule— (a) “transfer of value” has the...

    14. SCHEDULE 5

        Attribution of gains to settlors with interest in non-resident or dual resident settlement

        1. Construction of section 86(1)(e)

           1. 1. (1) In construing section 86(1)(e) as regards a particular year...

        2. Test whether settlor has interest

           1. 2. (1) For the purposes of section 86(1)(d) a settlor has...

        3. Settlements created before 17th March 1998

           1. 2A. (1) In determining for the purposes of section 86(1)(d) whether...

        4. Exceptions from section 86

           1. 3. Section 86 does not apply if the settlor dies in...

           2. 4. (1) This paragraph applies where for the purposes of section...

           3. 5. (1) This paragraph applies where for the purposes of section...

        5. Right of recovery

           1. 6. (1) This paragraph applies where any tax becomes chargeable on,...

        6. Meaning of “settlor"

           1. 7. For the purposes of section 86 and this Schedule, a...

        7. Meaning of “originating"

           1. 8. (1) References in section 86 and this Schedule to property...

        8. Qualifying settlements, and commencement

           1. 9. (1) A settlement created on or after 19th March 1991...

        9. Information

           1. 10. . . . . . . . . . ....

           2. 11. . . . . . . . . . ....

           3. 12. . . . . . . . . . ....

           4. 13. . . . . . . . . . ....

           5. 14. . . . . . . . . . ....

    15. SCHEDULE 5A

        Settlements with foreign element: information

        1. 1. In this Schedule “ the commencement day ” means the...

        2. 2. (1) This paragraph applies if— (a) a settlement was created...

        3. 3. (1) This paragraph applies if a settlement is created on...

        4. 4. (1) This paragraph applies if a settlement is created on...

        5. 5. (1) This paragraph applies if— (a) the trustees of a...

        6. 6. (1) Nothing in paragraph 2, 3, 4 or 5 above...

    16. SCHEDULE 5AZA

        Meaning of “scheme of reconstruction”

        1. Introductory

           1. 1. In sections 103H and 103I, “scheme of reconstruction” means a...

        2. Form of scheme

           1. 2. (1) A scheme (“the relevant scheme”) is within this paragraph...

        3. First condition: issue of units

           1. 3. (1) The first condition is that the relevant scheme involves...

        4. Second condition: equal entitlement to new units

           1. 4. (1) The second condition is that under the relevant scheme...

        5. Preliminary reorganisation of units to be disregarded

           1. 5. Where a reorganisation of the units in an original collective...

        6. Subsequent issue of units to be disregarded

           1. 6. An issue of units in any successor collective investment scheme...

    17. SCHEDULE 5AA

        Meaning of “scheme of reconstruction”

        1. Introductory

           1. 1. In section 136 “ scheme of reconstruction ” means a...

        2. First condition: issue of ordinary share capital

           1. 2. The first condition is that the scheme involves the issue...

        3. Second condition: equal entitlement to new shares

           1. 3. (1) The second condition is that under the scheme the...

        4. Third condition: continuity of business

           1. 4. (1) The third condition is that the effect of the...

        5. Fourth condition: compromise or arrangement with members

           1. 5. The fourth condition is that— (a) the scheme is carried...

        6. Preliminary reorganisation of share capital to be disregarded

           1. 6. Where a reorganisation of the share capital of the original...

        7. Subsequent issue of shares or debentures to be disregarded

           1. 7. An issue of shares in or debentures of the successor...

        8. Interpretation

           1. 8. (1) In this Schedule “ ordinary share capital ” has...

    18. SCHEDULE 5B

        Enterprise investment scheme: re-investment

        1. Application of Schedule

           1. 1. (1) This Schedule applies where— (a) there would (apart from...

        2. Failure of conditions of application

           1. 1A. (1) If the condition in sub-paragraph (2)(b) or (2)(da) of...

        3. Postponement of original gain

           1. 2. (1) On the making of a claim by the investor...

        4. Chargeable events

           1. 3. (1) Subject to the following provisions of this paragraph, there...

        5. Gain accruing on chargeable event

           1. 4. (1) On the occurrence of a chargeable event in relation...

        6. Person to whom gain accrues

           1. 5. (1) The chargeable gain which accrues, in accordance with paragraph...

        7. Claims

           1. 6. (1) Subject to sub-paragraph (2) below, section 306 of the...

        8. Reorganisations

           1. 7. (1) Where an individual holds shares which form part of...

        9. Acquisition of share capital by new company

           1. 8. (1) This paragraph applies where— (a) a company (“the new...

        10. Other reconstructions and amalgamations

            1. 9. (1) This paragraph applies if section 135 or 136 (company...

        11. Re-investment in same company etc.

            1. 10. (1) An individual to whom any eligible shares in a...

        12. Pre-arranged exits

            1. 11. (1) Where an individual subscribes for eligible shares (“the shares")...

        13. Disqualifying arrangements

            1. 11A. (1) Where an individual subscribes for eligible shares (“the shares”)...

        14. Put options and call options

            1. 12. (1) Sub-paragraph (2) below applies where an individual subscribes for...

        15. Value received by investor

            1. 13. (1) Where an individual who subscribes for eligible shares (“the...

        16. Provision supplemental to paragraph 13

            1. 13A. (1) For the purposes of paragraph 13 above, the value...

        17. Receipt of replacement value

            1. 13B. (1) Where— (a) by reason of a receipt of value...

        18. Provision supplemental to paragraph 13B

            1. 13C. (1) The receipt of the replacement value by the original...

        19. Value received by other persons

            1. 14. (1) Sub-paragraph (2) below applies where an individual subscribes for...

        20. Insignificant repayments disregarded for purposes of paragraph 14

            1. 14AA. (1) Any repayment shall be disregarded for the purposes of...

        21. Certain receipts to be disregarded for purposes of paragraph 14

            1. 14A. (1) Sub-paragraph (4) below applies where, by reason of a...

        22. Investment-linked loans

            1. 15. (1) Where at any time in the relevant period an...

        23. Information

            1. 16. (1) Where, in relation to any of the relevant shares...

        24. Trustees: general

            1. 17. (1) Subject to the following provisions of this paragraph, this...

        25. Trustees: anti-avoidance

            1. 18. (1) Paragraphs 13 to 13C and 15 above shall have...

        26. Interpretation

            1. 19. (1) For the purposes of this Schedule— “ 51 per...

    19. SCHEDULE 5BA

        Enterprise investment scheme: application of taper relief

        1. Application of Schedule

           1. 1. . . . . . . . . . ....

        2. Taper relief on revived gains

           1. 2. . . . . . . . . . ....

        3. Qualifying holding period

           1. 3. . . . . . . . . . ....

        4. Periods that do not count

           1. 4. . . . . . . . . . ....

        5. Gains on disposal of business or non-business assets

           1. 5. . . . . . . . . . ....

        6. Savings

           1. 6. . . . . . . . . . ....

        7. Relevant re-investment shares

           1. 7. . . . . . . . . . ....

        8. Derivation of gains

           1. 8. . . . . . . . . . ....

        9. Interpretation

           1. 9. . . . . . . . . . ....

    20. SCHEDULE 5BB

        Seed enterprise investment scheme: re-investment

        1. SEIS re-investment relief

           1. 1. (1) Sub-paragraph (5) applies where conditions A to C are...

        2. Restrictions on relief under paragraph 1

           1. 2. (1) Sub-paragraph (2) applies if the investor's tax reduction under...

        3. Claims

           1. 3. (1) Section 257EA of ITA 2007 (time for making claims...

        4. Attribution of SEIS re-investment relief to relevant SEIS shares

           1. 4. (1) References in this Schedule to the SEIS re-investment relief...

        5. Removal or reduction of the relief

           1. 5. (1) This paragraph applies where in respect of shares issued...

        6. Transfers of shares to spouses and civil partners

           1. 6. (1) This paragraph applies if— (a) shares to which an...

        7. Adjustment of capital gains tax liability

           1. 7. (1) All such adjustments of capital gains tax are to...

        8. Interpretation etc

           1. 8. (1) In this Schedule— “ bonus shares ” means shares...

    21. SCHEDULE 5C

        Venture capital trusts: deferred charge on re-investment

        1. Application of Schedule

           1. 1. . . . . . . . . . ....

        2. The postponement of the original gain

           1. 2. (1) On the making of a claim by the investor...

        3. Chargeable events

           1. 3. (1) Subject to the following provisions of this paragraph, there...

        4. Gain accruing on chargeable event

           1. 4. (1) On the occurrence of a chargeable event in relation...

        5. Persons to whom gain accrues

           1. 5. (1) The chargeable gain which accrues in accordance with paragraph...

        6. Interpretation

           1. 6. (1) In this Schedule “non-resident” means a person who is...

    22. SCHEDULE 6

        Retirement relief etc.

        1. Part I Interpretation

           1. 1. . . . . . . . . . ....

           2. 2. . . . . . . . . . ....

           3. 3. . . . . . . . . . ....

           4. 4. . . . . . . . . . ....

        2. Part II The operation of the relief

           1. Disposals on which relief may be given

              1. 5. . . . . . . . . . ....

           2. Gains qualifying for relief

              1. 6. . . . . . . . . . ....

              2. 7. . . . . . . . . . ....

              3. 8. . . . . . . . . . ....

              4. 9. . . . . . . . . . ....

              5. 10. . . . . . . . . . ....

              6. 11. . . . . . . . . . ....

              7. 12. . . . . . . . . . ....

           3. The amount available for relief: the basic rule

              1. 13. . . . . . . . . . ....

           4. Aggregation of earlier business periods

              1. 14. . . . . . . . . . ....

           5. Relief given on earlier disposal

              1. 15. . . . . . . . . . ....

           6. Aggregation of spouse’s interest in the business

              1. 16. . . . . . . . . . ....

    23. SCHEDULE 7

        Relief for gifts of business assets

        1. Part I Agricultural property and settled property

           1. Agricultural property

              1. 1. (1) This paragraph applies where— (a) there is a disposal...

           2. Settled property

              1. 2. (1) If— (a) the trustees of a settlement make a...

              2. 3. (1) This paragraph applies where— (a) there is a disposal...

        2. Part II Reductions in held-over gain

           1. Application and interpretation

              1. 4. (1) The provisions of this Part of this Schedule apply...

           2. Reductions peculiar to disposals of assets

              1. 5. (1) If, in the case of a disposal of an...

              2. 6. (1) If, in the case of a disposal of an...

           3. Reduction peculiar to disposal of shares

              1. 7. (1) If in the case of a disposal of shares...

           4. Reduction where gain partly relieved by retirement relief

              1. 8. (1) If, in the case of a disposal of an...

    24. SCHEDULE 7A

        Restriction on set-off of pre-entry losses

        1. Application and construction of Schedule

           1. 1. (1) This Schedule shall have effect, in the case of...

        2. Pre-entry proportion of losses on pre-entry assets

           1. 2. (1) Subject to paragraphs 3 to 5 below, the pre-entry...

        3. Disposals of pooled assets

           1. 3. (1) This paragraph shall apply (subject to paragraphs 4 and...

        4. Rule to prevent pre-entry losses on pooled assets being treated as post-entry losses

           1. 4. (1) This paragraph shall apply if— (a) there is a...

        5. Alternative calculation by reference to market value

           1. 5. (1) Subject to paragraph 4(5) above and the following provisions...

        6. Restrictions on the deduction of pre-entry losses

           1. 6. (1) In the calculation of the amount to be included...

        7. Gains from which pre-entry losses are to be deductible

           1. 7. (1) A pre-entry loss that accrued to a company before...

        8. Change of a company’s nature

           1. 8. (1) If— (a) within any period of three years, a...

        9. Identification of “the relevant group" and application of Schedule to every connected group

           1. 9. (1) This paragraph shall apply where there is more than...

        10. Appropriations to stock in trade

            1. 10. Where, but for an election under subsection (3) of section...

            2. 10A. Section 161(3ZB)(a) and (b) does not apply to a loss...

        11. Continuity provisions

            1. 11. (1) This paragraph applies where provision has been made by...

        12. Companies changing groups on certain transfers of shares etc.

            1. 12. For the purposes of this Schedule, and without prejudice to...

    25. SCHEDULE 7AA

        Restrictions on setting losses against pre-entry gains

        1. Introductory

           1. 1. (1) This Schedule applies in the case of any company...

        2. Restriction on setting off losses

           1. 2. (1) Notwithstanding anything in section 8 or Schedule 7A, the...

        3. Adjustment of pre-entry gains

           1. 3. (1) For the purposes of paragraph 2 above the adjusted...

        4. Meaning of “qualifying losses"

           1. 4. (1) Any amount which, in the case of the relevant...

        5. Special rule for disposal of pooled assets

           1. 5. (1) This paragraph applies where— (a) any holding of securities...

        6. Special rule for losses on disposal of certain assets acquired at different times

           1. 6. (1) This paragraph applies in relation to any allowable loss...

        7. Special rule for gains and losses on deemed annual disposal

           1. 7. Where— (a) a chargeable gain or allowable loss is treated...

    26. SCHEDULE 7AB

        Roll-over of degrouping charge: modification of enactments

        1. Introductory

           1. 1. . . . . . . . . . ....

        2. Section 152

           1. 2. . . . . . . . . . ....

        3. Section 153

           1. 3. . . . . . . . . . ....

        4. Section 153A

           1. 4. . . . . . . . . . ....

        5. Section 155

           1. 5. . . . . . . . . . ....

        6. Section 159

           1. 6. . . . . . . . . . ....

        7. Section 175

           1. 7. . . . . . . . . . ....

        8. Section 185

           1. 8. . . . . . . . . . ....

        9. Section 198

           1. 9. . . . . . . . . . ....

        10. Schedule 22 to the Finance Act 2000

            1. 10. . . . . . . . . . ....

    27. SCHEDULE 7AC

        Exemptions for disposals by companies with substantial shareholding

        1. Part 1 The exemptions

           1. The main exemption

              1. 1. (1) A gain accruing to a company (“ the investing...

           2. Subsidiary exemption: disposal of asset related to shares where main exemption conditions met

              1. 2. (1) A gain accruing to a company (“ company A...

           3. Subsidiary exemption: disposal of shares or related asset where main exemption conditions previously met

              1. 3. (1) A gain accruing to a company (“ company A...

           4. Application of exemptions in priority to provisions deeming there to be no disposal etc

              1. 4. (1) For the purposes of determining whether an exemption conferred...

           5. Circumstances in which exemptions do not apply

              1. 5. (1) Where in pursuance of arrangements to which this paragraph...

           6. Other cases excluded from exemptions

              1. 6. (1) The exemptions conferred by this Schedule do not apply—...

        2. Part 2 The substantial shareholding requirement

           1. The requirement

              1. 7. The investing company must have held a substantial shareholding in...

           2. Meaning of “substantial shareholding"

              1. 8. (1) For the purposes of this Schedule a company holds...

           3. Aggregation of holdings of group companies

              1. 9. (1) For the purposes of paragraph 7 (the substantial shareholding...

           4. Effect of earlier no-gain/no-loss transfer

              1. 10. (1) For the purposes of this Part the period for...

           5. Effect of deemed disposal and reacquisition

              1. 11. (1) For the purposes of this Part a company is...

           6. Effect of repurchase agreement

              1. 12. (1) This paragraph applies where— (a) a company (“ the...

           7. Effect of stock lending arrangements

              1. 13. (1) This paragraph applies where— (a) a company that holds...

           8. Effect in relation to company invested in of earlier company reconstruction etc

              1. 14. (1) This paragraph applies where shares in one company (“...

           9. Effect in relation to company invested in of earlier demerger

              1. 15. (1) This paragraph applies where shares in one company (“...

           10. Effect of transfer of trading assets within a group

               1. 15A. (1) For the purposes of this Part, the period for...

           11. Effect of investing company’s liquidation

               1. 16. Where assets of the investing company, or of a company...

           12. Special rules for assets of insurance company held for the purposes of its long-term business

               1. 17. (1) In the following two cases paragraph 8(1) (meaning of...

        3. Part 3 Requirements to be met in relation to investing company and company invested in

           1. Requirements relating to the investing company

              1. 18. (1) The investing company must— (a) have been a sole...

           2. Requirements relating to the company invested in

              1. 19. (1) The company invested in must— (a) have been a...

           3. Meaning of “trading company"

              1. 20. (1) In this Schedule “ trading company ” means a...

           4. Meaning of “trading group"

              1. 21. (1) In this Schedule “ trading group ” means a...

           5. Meaning of “trading subgroup"

              1. 22. (1) In this Schedule “ trading subgroup ” means a...

           6. Treatment of holdings in joint venture companies

              1. 23. (1) This paragraph applies where a company (“ the company...

           7. Meaning of “joint venture company" and “qualifying shareholding"

              1. 24. (1) For the purposes of this Schedule a company is...

           8. Effect in relation to company invested in of earlier company reconstruction, demerger etc

              1. 25. The provisions of— (a) paragraph 14 (effect of earlier company...

        4. Part 4 Interpretation

           1. Meaning of “company", “group" and related expressions

              1. 26. (1) In this Schedule— (a) “ company ” has the...

           2. Meaning of “trade"

              1. 27. In this Schedule “ trade ” means anything that—

           3. Meaning of “twelve-month period"

              1. 28. For the purposes of this Schedule a “ twelve-month period...

           4. Meaning of “interest in shares"

              1. 29. (1) References in this Schedule to an interest in shares...

           5. Meaning of “asset related to shares"

              1. 30. (1) This paragraph explains what is meant by an asset...

           6. Index of defined expressions

              1. 31. In this Schedule the expressions listed below are defined or...

        5. Part 5 Consequential provisions

           1. Meaning of “chargeable shares" or “chargeable asset"

              1. 32. Any exemption conferred by this Schedule shall be disregarded in...

           2. Negligible value claims

              1. 33. (1) This paragraph applies where— (a) a company makes a...

           3. Reorganisations etc: deemed accrual of chargeable gain or allowable loss held over on earlier transaction

              1. 34. (1) The exemptions conferred by this Schedule do not apply...

           4. Recovery of charge postponed on transfer of assets to non-resident company

              1. 35. (1) This paragraph applies where— (a) a company disposes of...

           5. Appropriation of asset to trading stock

              1. 36. (1) Where— (a) an asset acquired by a company otherwise...

           6. Recovery of held-over gain on claim for gifts relief

              1. 37. (1) This paragraph applies where— (a) a company disposes of...

           7. Degrouping: time when deemed sale and reacquisition treated as taking place

              1. 38. (1) Where— (a) a company, as a result of ceasing...

           8. Effect of FOREX matching regulations

              1. 39. (1) No gain or loss shall be treated as arising...

    28. SCHEDULE 7AD

        Gains of insurance company from venture capital investment partnership

        1. Introduction

           1. 1. This Schedule applies where the assets held by an insurance...

        2. Meaning of “venture capital investment partnership”

           1. 2. (1) A “venture capital investment partnership” means a partnership in...

        3. Interest in relevant assets of partnership treated as single asset

           1. 3. (1) Where this Schedule applies section 59 (partnerships) does not...

        4. The cost of the single asset

           1. 4. (1) The company is treated as having given, wholly and...

        5. Deemed disposal of single asset in case of distribution

           1. 5. (1) There is a disposal of the single asset on...

        6. Apportionment in case of part disposal

           1. 6. (1) For the purposes of section 42 (apportionment of cost...

        7. Disposal of partnership asset giving rise to offshore income gain

           1. 7. (1) Nothing in this Schedule shall be read as affecting...

        8. Exclusion of negligible value claim

           1. 8. No claim may be made in respect of the single...

        9. Investment in other venture capital investment partnerships

           1. 9. (1) For the purposes of paragraph 2 (meaning of “venture...

        10. Interpretation

            1. 10. (1) In this Schedule— “insurance company”, “long-term business” and “long-term...

        11. General commencement and transitional provisions

            1. 11. (1) Subject to paragraph 12 (election to remain outside Schedule),...

        12. Election to remain outside Schedule

            1. 12. If the company— (a) became a member of the partnership...

        13. How and when election to be made

            1. 13. Any election under paragraph 11 or 12 must be made—...

    29. SCHEDULE 7B

        Modification of Act in relation to overseas life insurance companies

        1. 1. . . . . . . . . . ....

        2. 2. . . . . . . . . . ....

        3. 3. . . . . . . . . . ....

        4. 4. . . . . . . . . . ....

        5. 5. . . . . . . . . . ....

        6. 6. . . . . . . . . . ....

        7. 6A. . . . . . . . . . ....

        8. 6B. . . . . . . . . . ....

        9. 7. . . . . . . . . . ....

        10. 7A. . . . . . . . . . ....

        11. 8. . . . . . . . . . ....

        12. 9. . . . . . . . . . ....

        13. 9A. . . . . . . . . . ....

        14. 10. . . . . . . . . . ....

        15. 11. . . . . . . . . . ....

        16. 12. . . . . . . . . . ....

        17. 13. . . . . . . . . . ....

        18. 14. . . . . . . . . . ....

        19. 15. . . . . . . . . . ....

        20. 16. . . . . . . . . . ....

    30. SCHEDULE 7C

        Relief for transfers to Schedule 2 share plans

        1. Introductory

           1. 1. (1) A person (“the claimant”) who makes a disposal of...

        2. Conditions relating to the disposal

           1. 2. (1) The first condition is that, at the time of...

        3. Reinvestment of disposal proceeds

           1. 3. (1) This sub-paragraph applies if the claimant obtains consideration for...

        4. Provision supplementary to paragraphs 2 and 3

           1. 4. (1) This paragraph applies for the purposes of paragraphs 2...

        5. The relief

           1. 5. (1) Where the claimant is entitled to claim relief under...

        6. Dwelling-houses: special provision

           1. 6. (1) Sub-paragraph (2) applies where— (a) a claim is made...

        7. Shares: special provision

           1. 7. (1) Sub-paragraph (2) applies where— (a) a claim is made...

        8. Meaning of “chargeable asset”

           1. 8. For the purposes of this Schedule an asset is a...

    31. SCHEDULE 7D

        ... share schemes and share incentives

        1. Part 1 Schedule 2 share incentive plans

           1. Introductory

              1. 1. (1) The provisions of this Part of this Schedule apply...

           2. Gains accruing to trustees

              1. 2. (1) Any gain accruing to the trustees is not a...

           3. Participant absolutely entitled as against trustees

              1. 3. (1) Sub-paragraph (2) applies to any shares awarded to a...

           4. Different classes of shares

              1. 4. (1) For the purposes of Chapter 1 of Part 4...

           5. No chargeable gain on shares ceasing to be subject to the plan

              1. 5. (1) Shares which cease to be subject to the plan...

           6. Deemed disposal by trustees on disposal of beneficial interest

              1. 6. (1) If at any time the participant’s beneficial interest in...

           7. Treatment of forfeited shares

              1. 7. (1) If any of the participant’s plan shares are forfeited,...

           8. Disposal of rights under rights issue

              1. 8. (1) Any gain accruing on the disposal of rights under...

        2. Part 2 Schedule 3 SAYE option schemes

           1. Introductory

              1. 9. (1) This Part of this Schedule forms part of the...

           2. Market value rule not to apply

              1. 10. (1) This paragraph applies where— (a) a share option (“the...

        3. Part 3 Schedule 4 CSOP schemes

           1. Introductory

              1. 11. (1) This Part of this Schedule forms part of the...

           2. Relief where income tax charged in respect of grant of option

              1. 12. (1) This paragraph applies where an amount (the “employment income...

           3. Market value rule not to apply

              1. 13. (1) This paragraph applies where— (a) the individual exercises the...

        4. Part 4 Enterprise management incentives

           1. Introductory

              1. 14. (1) This Part of this Schedule forms part of the...

           2. Taper relief on disposal of qualifying shares

              1. 15. . . . . . . . . . ....

           3. Rights issues in respect of qualifying shares

              1. 16. Where— (a) an individual holds qualifying shares, and

    32. SCHEDULE 8

        Leases

        1. Leases of land as wasting assets: curved line restriction of allowable expenditure

           1. 1. (1) A lease of land shall not be a wasting...

        2. Premiums for leases

           1. 2. (1) Subject to this Schedule where the payment of a...

           2. 3. (1) This paragraph applies in relation to a lease of...

        3. Subleases out of short leases

           1. 4. (1) In the computation of the gain accruing on the...

        4. Exclusion of premiums taxed as receipts of a property business etc.

           1. 5. (1) Where by reference to any premium any amount is...

           2. 6. (1) If under section 292 of ITTOIA 2005 or section...

           3. 7. If— (a) under section 277 of ITTOIA 2005 any amount...

           4. 7A. References in paragraphs 5 to 7 above to an amount...

        5. Duration of leases

           1. 8. (1) In ascertaining for the purposes of this Act the...

        6. Leases of property other than land

           1. 9. (1) Paragraphs 2, 3, 4 and 8 of this Schedule...

        7. Interpretation

           1. 10. (1) In this Act, unless the context otherwise requires “lease”...

    33. SCHEDULE 8A

        1. Introductory

           1. 1. (1) This Schedule applies where— (a) an individual makes a...

        2. Section 37 operates to exclude the whole consideration

           1. 2. (1) This paragraph applies where the section 37 amount constitutes...

        3. Section 37 operates to exclude part of the consideration

           1. 3. (1) This paragraph applies where the section 37 amount constitutes...

        4. Interpretation

           1. 4. In this Schedule— “ debt costs ” means the sums...

    34. SCHEDULE 8B

        Hold-over relief for gains re-invested in social enterprises

        1. When does the Schedule apply?

           1. 1. (1) This Schedule applies if— (a) a chargeable gain accrues...

           2. 2. (1) This Schedule also applies if— (a) a chargeable gain...

        2. Interpretation of Schedule

           1. 3. (1) In the following provisions of this Schedule— “ the...

        3. Claim to hold gain over while invested in a social enterprise

           1. 4. (1) The investor may make a claim for the original...

        4. Held-over gain treated as accruing on disposal etc of the qualifying investment

           1. 5. (1) This paragraph applies if there has been a reduction...

        5. Chargeable events

           1. 6. (1) A chargeable event occurs in relation to an asset...

        6. Person to whom held-over gain is treated as accruing

           1. 7. (1) This paragraph applies where a chargeable gain is treated...

        7. Claims: procedure

           1. 8. (1) Sections 257P(1), 257PA(1) and 257PB to 257PD of ITA...

    35. SCHEDULE 9

        Gilt-edged securities

        1. Part I General

           1. 1. For the purposes of this Act “gilt-edged securities” means the...

           2. 1A. (1) Any security which is a strip of a security...

           3. 2. The Treasury shall cause particulars of any order made under...

           4. 3. Section 14(b) of the Interpretation Act 1978 (implied power to...

        2. Part II Existing gilt-edged securities

    36. SCHEDULE 10

        Consequential amendments

        1. Post Office Act 1969 c. 48

           1. 1. In section 74 of the Post Office Act 1969 for...

        2. Taxes Management Act 1970 c. 9

           1. 2. (1) The Taxes Management Act 1970 shall have effect subject...

        3. Finance Act 1973 c. 51

           1. 3. (1) In section 38(2) of the Finance Act 1973 for...

        4. British Aerospace Act 1980 c. 26

           1. 4. In section 12(2) of the British Aerospace Act 1980 for...

        5. British Telecommunications Act 1981 c. 38

           1. 5. In section 82(1) for “Capital Gains Tax Act 1979” and...

        6. Value Added Tax Act 1983 c. 55

           1. 6. In Group 11 of Schedule 6 to the Value Added...

        7. Telecommunications Act 1984 c. 12

           1. 7. In section 72(2) of the Telecommunications Act 1984 for “272(5)...

        8. Inheritance Tax Act 1984 c. 51

           1. 8. (1) The Inheritance Tax Act shall have effect subject to...

        9. Finance Act 1985 c. 54

           1. 9. In section 81 for “Capital Gains Tax Act 1979” there...

        10. Trustee Savings Bank Act 1985 c. 58

            1. 10. (1) In paragraph 2 of Schedule 2 to the Trustee...

        11. Transport Act 1985 c. 67

            1. 11. In section 130— (a) in subsection (3) for “Capital Gains...

        12. Airports Act 1986 c. 31

            1. 12. In section 77(2) of the Airports Act 1986 for “272(5)...

        13. Gas Act 1986 c. 44

            1. 13. In section 60(2) of the Gas Act 1986 for “272(5)...

        14. Income and Corporation Taxes Act 1988 c. 1

            1. 14. (1) The Income and Corporation Taxes Act 1988 shall have...

        15. British Steel Act 1988 c. 35

            1. 15. In section 11(2) of the British Steel Act 1988 for...

        16. Finance Act 1988 c. 39

            1. 16. (1) The Finance Act 1988 shall have effect subject to...

        17. Health and Medicines Act 1988 c. 49

            1. 17. In section 6(2) of the Health and Medicines Act 1988...

        18. Water Act 1989 c. 15

            1. 18. In section 95 of the Water Act 1989—

        19. Finance Act 1989 c. 26

            1. 19. (1) In section 69(9) of the Finance Act 1989 for...

        20. Electricity Act 1989 c. 29

            1. 20. (1) In paragraph 2 of Schedule 11 to the Electricity...

        21. Capital Allowances Act 1990 c. 1

            1. 21. (1) The following section shall be inserted in the Capital...

        22. Finance Act 1990 c. 29

            1. 22. (1) The Finance Act 1990 shall have effect subject to...

        23. Finance Act 1991 c. 31.

            1. 23. In section 72(4) of the Finance Act 1991 for “5(1)...

        24. Ports Act 1991 c. 52

            1. 24. (1) In section 16 of the Ports Act 1991 for...

        25. British Technology Group Act 1991 c. 66

            1. 25. In section 12(2) of the British Technology Group Act 1991...

    37. SCHEDULE 11

        Transitional provisions and savings

        1. Part I Valuation

           1. Preliminary

              1. 1. (1) This Part of this Schedule has effect in cases...

           2. Gifts and transactions between connected persons before 20th March 1985

              1. 2. (1) Where sub-paragraph (1) above applies for the purpose of...

           3. Valuation of assets before 6th July 1973

              1. 3. Section 273 shall apply for the purposes of determining the...

              2. 4. (1) This paragraph applies if, in a case where the...

              3. 5. (1) In any case where— (a) before 6th July 1973...

           4. Valuation of assets on 6th April 1965

              1. 6. (1) For the purpose of ascertaining the market value of...

           5. References to the London Stock Exchange before 25th March 1973and Exchange Control restrictions before 13th December 1979

              1. 7. (1) For the purposes of ascertaining the market value of...

           6. Depreciated valuations referable to deaths before 31st March 1973

              1. 8. In any case where this Part applies, section 272(2) shall...

           7. Estate duty

              1. 9. (1) Where estate duty (including estate duty leviable under the...

        2. Part II Other transitory provisions

           1. Value-shifting

              1. 10. (1) Section 30 applies only where the reduction in value...

           2. Assets acquired on disposal chargeable under Case VII of Schedule D

              1. 11. (1) In this paragraph references to a disposal chargeable under...

           3. Unrelieved Case VII losses

              1. 12. Where no relief from income tax (for a year earlier...

           4. Devaluation of sterling: securities acquired with borrowed foreign currency

              1. 13. (1) This paragraph applies where, in pursuance of permission granted...

           5. Devaluation of sterling: foreign insurance funds

              1. 14. (1) The sums allowable as a deduction under section 38(1)(a)...

           6. Gilt-edged securities past redemption date

              1. 15. So far as material for the purposes of this or...

           7. Qualifying corporate bonds, company reorganisations, share conversions etc.

              1. 16. (1) Part IV of this Act has effect subject to...

           8. Land: allowance for betterment levy

              1. 17. (1) Where betterment levy charged in the case of any...

           9. Non-resident trusts

              1. 18. Without prejudice to section 289 or Part III of this...

           10. Private residences

               1. 19. The reference in section 222(5)(a) to a notice given by...

           11. Works of art etc.

               1. 20. The repeals made by this Act do not affect the...

           12. Disposal before acquisition

               1. 21. The substitution of this Act for the corresponding enactments repealed...

           13. Estate duty

               1. 22. Nothing in the repeals made by this Act shall affect...

           14. Validity of subordinate legislation

               1. 23. So far as this Act re-enacts any provision contained in...

           15. Amendments in other Acts

               1. 24. (1) The repeal by this Act of the Income and...

           16. Saving for Part III of this Schedule

               1. 25. The provisions of this Part of this Schedule are without...

        3. Part III Assets acquired before commencement

           1. 26. (1) The substitution of this Act for the enactments repealed...

           2. 27. Where the acquisition or provision of any asset by one...

        4. Part IV Other general savings

           1. 28. Where under any Act passed before this Act and relating...

           2. 29. (1) The continuity of the law relating to the taxation...

    38. SCHEDULE 12

        Repeals