Part V Transfer of business assetsF2, F3business asset disposal relief and investors' relief
Words in Act substituted (with effect for the tax year 2020-21 and subsequent tax years) by Finance Act 2020 (c. 14), Sch. 3 paras. 7(2)(a), 8 (with Sch. 3 para. 7(3))
F1Chapter 4F3business asset disposal relief where held-over gains become chargeable
Pt. 5 Ch. 4 inserted (with effect in accordance with s. 44(2) of the amending Act) by Finance Act 2015 (c. 11), s. 44(1)
169VOperation of deferred F3business asset disposal relief
1
Where this section applies, the following rules have effect.
2
The gain mentioned in section 169U(2) (“the first eventual gain”)—
a
is treated for F4relevant purposes as the amount resulting from a calculation under section 169N(1) carried out—
i
in respect of a qualifying business disposal made when the first eventual gain accrues, and
ii
because of the claim mentioned in section 169U(5), and
b
except for F4relevant purposes, is not to be taken into account under this Act as a chargeable gain.
3
If the first eventual gain is a part only of the original gain in the case concerned, each part of the original gain that subsequently accrues as a chargeable gain as a result of the operation of the relevant paragraph—
a
is treated for F4relevant purposes as the amount resulting from a calculation under section 169N(1) carried out—
i
in respect of a qualifying business disposal made when that chargeable gain so accrues, and
ii
because of the claim mentioned in section 169U(5), and
b
except for F4relevant purposes, is not to be taken into account under this Act as a chargeable gain.
4
If the disposal mentioned in paragraph (a) or (b) of section 169U(4) is a disposal within section 169H(2)(c) (qualifying business disposal: disposal associated with a relevant material disposal)—
a
a disposal mentioned in subsection (2) or (3) of this section is treated for the purposes of section 169P(1) as a disposal associated with a relevant material disposal, but
b
section 169P applies in relation to that disposal as if the disposal referred to in section 169P(4) were the disposal mentioned in section 169U(4)(a) or (b).
5
In this section “F4relevant purposes” means the purposes of—
a
section 169N(2) to (4B), (7) and (8), and
b
section 169P.
Words in Pt. 5 heading inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 14 para. 1(1)