Part V U.K. Transfer of business assets[F1 , entrepreneurs' relief and investors' relief]

Textual Amendments

F1 Words in Pt. 5 heading inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 14 para. 1(1)

[F2 Chapter 5 U.K.Investors' relief

Textual Amendments

F2 Pt. 5 Ch. 5 inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 14 para. 2

Cap on relief U.K.

169VK Cap on relief for disposal by an individual U.K.

(1) This section applies if, on a disposal within section 169VC(1) made by an individual (“the individual concerned”), the aggregate of—

(a) the amount of the relevant gain on the disposal (“the gain in question”),

(b) the total amount of any gains that, in relation to earlier disposals by the individual concerned, were charged at the rate in section 169VC(2), and

(c) the total amount of any reckonable trust gains that, on any previous trust disposals in respect of which the individual concerned was an eligible beneficiary, were charged at the rate in section 169VC(2),

exceeds £10 million.

(2) The rate in section 169VC(2) applies only to so much (if any) of the gain in question as, when added to the aggregate of the total amounts mentioned in subsection (1)(b) and (c), does not exceed £10 million.

(3) [F3 Section 1H] (rates of capital gains tax) applies to so much of the gain in question as is not subject to the rate in section 169VC(2).

(4) In this section—

• “eligible beneficiary”, in relation to a disposal, is to be read in accordance with section 169VH(2);

• “reckonable trust gain”, in relation to a trust disposal in respect of which the individual concerned was an eligible beneficiary, means—

  (a)

  if section 169VI(1)(c) applied in relation to the disposal, that individual's share of the relevant gain on that disposal, within the meaning given by section 169VI(4) and (5);

  (b)

  otherwise, the relevant gain on that disposal;

• “the relevant gain”, in relation to a disposal, has the meaning given by section 169VC(3);

• “trust disposal” means a disposal by the trustees of a settlement.

Textual Amendments

F3 Words in s. 169VK(3) substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 59

169VL Cap on relief for disposal by trustees of a settlement U.K.

(1) This section applies where—

(a) a disposal (“the disposal in question”) is made by the trustees of a settlement,

(b) that disposal is within section 169VC(1), and

(c) there is an excess amount in relation to an individual who is an eligible beneficiary in respect of the disposal in question (“the individual concerned”).

(2) For the purposes of this section there is an “excess amount” in relation to the individual concerned if the aggregate of—

(a) the amount of the current gain,

(b) the total amount of any gains that, in relation to earlier disposals made by the individual concerned, were charged at the rate in section 169VC(2), and

(c) the total amount of any reckonable trust gains that, on any previous trust disposals in respect of which the individual concerned was an eligible beneficiary, were charged at the rate in section 169VC(2),

exceeds £10 million.

(3) The rate in section 169VC(2) applies to the current gain only to the extent (if any) that the current gain when added to the aggregate of the total amounts mentioned in subsection (2)(b) and (c) does not exceed £10 million.

(4) [F4 Section 1H] (rates of capital gains tax) applies to so much of the current gain as is not subject to the rate in section 169VC(2).

(5) In this section—

• “the current gain” means the reckonable trust gain on the disposal in question;

• “eligible beneficiary”, in relation to a disposal, is to be read in accordance with section 169VH(2);

• “reckonable trust gain”, in relation to any trust disposal in respect of which the individual concerned is an eligible beneficiary, means—

  (a)

  if section 169VI(1)(c) applies in relation to the disposal, that individual's share of the relevant gain on that disposal, within the meaning given by section 169VI(4) and (5);

  (b)

  otherwise, the relevant gain on that disposal;

• “the relevant gain”, in relation to a disposal, has the meaning given by section 169VC(3);

• “trust disposal” means a disposal by the trustees of a settlement.]

Textual Amendments

F4 Words in s. 169VL(4) substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 60