Part I Capital gains tax and corporation tax on chargeable gains
Capital gains tax
4 Rates of capital gains tax.
1
F31AA
The rate of capital gains tax in respect of gains accruing to—
a
the trustees of a settlement, or
b
the personal representatives of a deceased person,
F91AB
If F13an individual has no Step 3 income for a year of assessment or the individual’s Step 3 income for the year is less than the starting rate limit, then—
a
if the amount on which he is chargeable to capital gains tax does not exceed the unused part of his starting rate band, the rate of capital gains tax in respect of gains accruing to him in the year shall be equivalent to the starting rate;
b
if the amount on which he is chargeable to capital gains tax exceeds the unused part of his starting rate band, the rate of capital gains tax in respect of such gains accruing to him in the year as correspond to the unused part shall be equivalent to the starting rate.
1AC
The references in subsection (1AB) above to the unused part of an individual’s starting rate band are to the amount by which the starting rate limit exceeds F14the individual’s Step 3 income.
F61A
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F61B
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2
3
If no income tax is chargeable at the higher rate F2or the F10dividend upper rate in respect of the income of an individual for a year of assessment, but the amount on which he is chargeable to capital gains tax exceeds the unused part of his basic rate band, the rate of capital gains tax on the excess shall be equivalent to the higher rate of income tax for the year.
F73A
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F73B
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4
F155
For the purposes of this section the “Step 3 income” of an individual means the individual's net income less allowances deducted at Step 3 of the calculation in section 23 of ITA 2007 for the purpose of calculating the individual's income tax liability.
6
Section 989 of ITA 2007 (the definitions) applies for the purposes of this section as it applies for income tax purposes.