Textual Amendments
F1Pt. 1 substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 2
(1)If any of an individual's income for a tax year is chargeable to income tax at a higher income tax rate, gains accruing to the individual in the tax year are charged—
(a)at the rate of 28%(if they are residential property gains or carried interest gains), or
(b)at the rate of 20% (if they are other kinds of gains).
(2)If—
(a)none of an individual's income for a tax year is chargeable to income tax at a higher income tax rate, but
(b)the individual is chargeable to capital gains tax for the tax year on an amount that exceeds the unused part of the individual's basic rate band,
the excess (“the higher rate excess”) is charged at the rate of 28%(so far as comprising residential property gains or carried interest gains) or at the rate of 20% (so far as comprising other kinds of gains).
(3)The remainder of this section sets out special rules which apply depending on the nature of the gains within subsection (2)(b).
(4)If—
(a)the gains consist of or include gains (“entrepreneur or investor gains”) chargeable at the rate of 10% under section 169N(3) or 169VC(2), and
(b)the total amount of the entrepreneur or investor gains exceeds the unused part of the individual's basic rate band,
that unused part is used fully against those gains.
(5)The effect of so doing is that other gains comprised in the higher rate excess are then charged—
(a)at the rate of 28%(if they are residential property gains or carried interest gains), or
(b)at the rate of 20% (if they are other kinds of gains).
(6)If the total amount of the entrepreneur or investor gains does not exceed the unused part of the individual's basic rate band—
(a)so much of that unused part as is equal to that total amount is used against those gains, and
(b)accordingly, the higher rate excess consists only of gains other than entrepreneur or investor gains.
(7)The individual may allocate so much of the unused part of the individual's basic rate band as then remains to—
(a)any residential property gains or carried interest gains, or
(b)any other gains.
(8)The effect of the allocation is that the gains to which the allocation is made are charged—
(a)at the rate of 18%(if they are residential property gains or carried interest gains), or
(b)at the rate of 10% (if they are other kinds of gains).
(9)Any gains to which no allocation is made are charged—
(a)at the rate of 28%(if they are residential property gains or carried interest gains), or
(b)at the rate of 20% (if they are other kinds of gains).]