SCHEDULES

SCHEDULE 7 Relief for gifts of business assets

Part II Reductions in held-over gain

Application and interpretation

4

1

The provisions of this Part of this Schedule apply in cases where a claim for relief is made under section 165.

2

In this Part of this Schedule—

a

“the principal provision” means section 165(2), or, as the case may require, sub-paragraph (2) of paragraph 2 above,

b

“shares” includes securities,

c

“the transferor” has the same meaning as in section 165 except that, in a case where paragraph 2 above applies, it refers to the trustees mentioned in that paragraph, and

d

“unrelieved gain”, in relation to a disposal, has the same meaning as in section 165(7).

3

In this Part of this Schedule—

a

any reference to a disposal of an asset is a reference to a disposal which falls within subsection (1) of section 165 by virtue of subsection (2)(a) of that section or, as the case may be, falls within sub-paragraph (1) of paragraph 2 above by virtue of sub-paragraph (2)(a) of that paragraph, and

b

any reference to a disposal of shares is a reference to a disposal which falls within subsection (1) of section 165 by virtue of subsection (2)(b) of that section or, as the case may be, falls within sub-paragraph (1) of paragraph 2 above by virtue of sub-paragraph (2)(b) of that paragraph.

4

In relation to a disposal of an asset or of shares, any reference in the following provisions of this Part of this Schedule to the held-over gain is a reference to the held-over gain on that disposal as determined under subsection (6) or, where it applies, subsection (7) of section 165.