Part V Transfer of business assetsF1, entrepreneurs' relief and investors' relief
F2Chapter 5Investors' relief
Pt. 5 Ch. 5 inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 14 para. 2
Cap on relief
169VLCap on relief for disposal by trustees of a settlement
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
F3Section 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;
- a
“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.
Words in Pt. 5 heading inserted (15.9.2016) by Finance Act 2016 (c. 24), Sch. 14 para. 1(1)