Version Superseded: 21/07/2008
Point in time view as at 10/07/2003.
Taxation of Chargeable Gains Act 1992, Cross Heading: Increase in tax payable under this Schedule is up to date with all changes known to be in force on or before 10 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
Textual Amendments
F1Sch. 4C inserted (with effect in accordance with s. 92(5) of the amending Act) by Finance Act 2000 (c. 17), s. 92(4), Sch. 26 Pt. I
13(1)This paragraph applies where—U.K.
(a)a capital payment is made by the trustees of a settlement,
(b)the payment is made in circumstances where paragraph 8 above treats chargeable gains as accruing in respect of the payment, and
(c)a beneficiary is charged to tax in respect of the payment by virtue of that paragraph.
(2)The tax payable by the beneficiary in respect of the payment shall be increased by the amount found under sub-paragraph (3) below, except that it shall not be increased beyond the amount of the payment; and an assessment may charge tax accordingly.
(3)The amount is one equal to the interest that would be yielded if an amount equal to the tax which would be payable by the beneficiary in respect of the payment (apart from this paragraph) carried interest for the chargeable period at the specified rate.
The “specified rate” means the rate for the time being specified in section 91(3).
(4)The chargeable period is the period which—
(a)begins with the later of the 2 days specified in sub-paragraph (5) below, and
(b)ends with 30th November in the year of assessment following that in which the capital payment is made.
(5)The 2 days are—
(a)1st December in the year of assessment following [F2the year of the gain (determined in accordance with paragraph 8B(3))], and
(b)1st December falling 6 years before 1st December in the year of assessment following that in which the capital payment is made.]
Textual Amendments
F2Words in Sch. 4C para. 13(5)(a) substituted (10.7.2003) by Finance Act 2003 (c. 14), Sch. 29 para. 6(3) (with s. 163(4)-(6))
All content is available under the Open Government Licence v3.0 except where otherwise stated. This site additionally contains content derived from EUR-Lex, reused under the terms of the Commission Decision 2011/833/EU on the reuse of documents from the EU institutions. For more information see the EUR-Lex public statement on re-use.
