Part VIII Supplemental
281 Payment by instalments of tax on gifts.
1
Subsection (2) below applies where—
a
the whole or any part of any assets to which this section applies is disposed of by way of gift or is deemed to be disposed of under section 71(1) or 72(1), and
b
the disposal is one—
i
to which neither section 165(4) nor section 260(3) applies (or would apply if a claim were duly made), or
ii
to which either of those sections does apply but on which the held-over gain (within the meaning of the section applying) is less than the chargeable gain which would have accrued on that disposal apart from that section.
2
Where this subsection applies, the capital gains tax chargeable on a gain accruing on the disposal may, if the person paying it by notice to F5an officer of the Board so elects, be paid by 10 equal yearly instalments.
3
The assets to which this section applies are—
a
land or an estate or interest in land,
b
any shares or securities of a company which, immediately before the disposal, gave control of the company to the person by whom the disposal was made or deemed to be made, and
4
Where tax is payable by instalments by virtue of this section, the first instalment shall be due on the day on which the tax would be payable apart from this section.
5
Subject to the following provisions of this section—
F2a
tax payable by instalments by virtue of this section carries interest in accordance with Part IX of the Management Act as that Part applies where no election is made under subsection (2) above, and
b
the interest on the unpaid portion of the tax shall be added to each instalment and paid accordingly.
6
Tax payable by instalments by virtue of this section which is for the time being unpaid, with interest F3(determined in accordance with subsection (5)(a) above) to the date of payment, may be paid at any time.
7
Tax which apart from this subsection would be payable by instalments by virtue of this section and which is for the time being unpaid, with interest F4(determined in accordance with subsection (5)(a) above as if the tax were tax payable by instalments by virtue of this section) to the date of payment, shall become due and payable immediately if—
a
the disposal was by way of gift to a person connected with the donor or was deemed to be made under section 71(1) or 72(1), and
b
the assets are disposed of for valuable consideration under a subsequent disposal (whether or not the subsequent disposal is made by the person who acquired them under the first disposal).
F68
Subsection (2) above applies in relation to a chargeable gain accruing to a transferor under section 169C(7) (clawback of relief under section 165 or 260 if settlement becomes settlor-interested etc) as it applies in relation to a gain accruing to a person on a disposal if—
a
the relevant disposal (within the meaning of section 169C) in question was a disposal of the whole or any part of any assets to which this section applies, and
b
at the material time (within the meaning of that section), no part of the subject-matter of that relevant disposal has been disposed of for valuable consideration under a subsequent disposal (whether made by the trustees to whom that relevant disposal was made or by some other person).
9
Where subsection (2) above so applies, subsections (4) to (7) above apply accordingly but as if for paragraphs (a) and (b) of subsection (7) there were substituted “any part of the subject-matter of the relevant disposal in question is disposed of for valuable consideration under a subsequent disposal (whether made by the trustees to whom that relevant disposal was made or by some other person).”
.