(1)In section 101 of the M1Taxation of Chargeable Gains Act 1992 (transfer of company’s assets to investment trust) after subsection (1) there shall be inserted—
“(1A)Any chargeable gain or allowable loss which, apart from this subsection, would accrue to the company on the sale referred to in subsection (1) above shall be treated as accruing to the company immediately before the end of the last accounting period to end before the beginning of the accounting period mentioned in that subsection.”
(2)This section shall have effect as respects accounting periods ending on or after the day appointed under section 199 of the M2Finance Act 1994 for the purposes of Chapter III of Part IV of that Act (self-assessment management provisions).
(1)In subsection (4) of section 152 of the Taxation of Chargeable Gains Act 1992 (roll-over relief)—
(a)after the word “making” there shall be inserted the words “ or amending ”; and
(b)after the word “assessments”, in the second place where it occurs, there shall be inserted the words “ or amendments ”.
(2)After section 153 of that Act there shall be inserted the following section—
(1)This section applies where a person carrying on a trade who for a consideration disposes of, or of his interest in, any assets (“the old assets”) declares, in his return for the chargeable period in which the disposal takes place—
(a)that the whole or any specified part of the consideration will be applied in the acquisition of, or of an interest in, other assets (“the new assets”) which on the acquisition will be taken into use, and used only, for the purposes of the trade;
(b)that the acquisition will take place as mentioned in subsection (3) of section 152; and
(c)that the new assets will be within the classes listed in section 155.
(2)Until the declaration ceases to have effect, section 152 or, as the case may be, section 153 shall apply as if the acquisition had taken place and the person had made a claim under that section.
(3)The declaration shall cease to have effect as follows—
(a)if and to the extent that it is withdrawn before the relevant day, or is superseded before that day by a valid claim made under section 152 or 153, on the day on which it is so withdrawn or superseded; and
(b)if and to the extent that it is not so withdrawn or superseded, on the relevant day.
(4)On the declaration ceasing to have effect in whole or in part, all necessary adjustments—
(a)shall be made by making or amending assessments or by repayment or discharge of tax; and
(b)shall be so made notwithstanding any limitation on the time within which assessments or amendments may be made.
(5)In this section “the relevant day” means—
(a)in relation to capital gains tax, the third anniversary of the 31st January next following the year of assessment in which the disposal of, or of the interest in, the old assets took place;
(b)in relation to corporation tax, the fourth anniversary of the last day of the accounting period in which that disposal took place.
(6)Subsections (6), (8), (10) and (11) of section 152 shall apply for the purposes of this section as they apply for the purposes of that section.”
(3)In section 175 of that Act (replacement of business assets by members of a group)—
(a)in subsections (2A) and (2B), after the words “Section 152” there shall be inserted the words “ or 153 ”; and
(b)in subsection (2C), for the words “Section 152 shall not” there shall be substituted the words “ Neither section 152 nor section 153 shall ”.
(4)In section 246 of that Act (time of disposal or acquisition), the words from “or, if earlier” to the end shall cease to have effect.
(5)In subsection (5)(b) of section 247 of that Act (roll-over relief on compulsory acquisition), for the words “subsection (3)” there shall be substituted the words “ subsections (3) and (4) ”.
(6)After that section there shall be inserted the following section—
(1)This section applies where a person who disposes of land (“the old land”) to an authority exercising or having compulsory powers declares, in his return for the chargeable period in which the disposal takes place—
(a)that the whole or any specified part of the consideration for the disposal will be applied in the acquisition of other land (“the new land”);
(b)that the acquisition will take place as mentioned in subsection (3) of section 152; and
(c)that the new land will not be land excluded from section 247(1)(c) by section 248.
(2)Until the declaration ceases to have effect, section 247 shall apply as if the acquisition had taken place and the person had made a claim under that section.
(3)For the purposes of this section, subsections (3) to (5) of section 153A shall apply as if the reference to section 152148. or 153 were a reference to section 247 and the reference to the old assets were a reference to the old land.
(4)In this section “land” and “authority exercising or having compulsory powers” have the same meaning as in section 247.”
(1)Paragraph 3 of Schedule 8 to the M3Taxation of Chargeable Gains Act 1992 (premiums for leases) shall be amended as follows.
(2)In sub-paragraph (2), for the words “for the period” to the end there shall be substituted the words “, being a premium which—
(a)is due when the sum is payable by the tenant; and
(b)where the sum is payable in lieu of rent, is in respect of the period in relation to which the sum is payable.”
(3)In sub-paragraph (3), for the words “for the period” to the end there shall be substituted the words “, being a premium which—
(a)is due when the sum is payable by the tenant; and
(b)is in respect of the period from the time when the variation or waiver takes effect to the time when it ceases to have effect.”
(4)For sub-paragraphs (4) to (6) there shall be substituted the following sub-paragraphs—
“(4)Where under sub-paragraph (2) or (3) above a premium is deemed to have been received by the landlord, that shall not be the occasion of any recomputation of the gain accruing on the receipt of any other premium, and the premium shall be regarded—
(a)in the case of a premium deemed to have been received for the surrender of a lease, as consideration for a separate transaction which is effected when the premium is deemed to be due and consists of the disposal by the landlord of his interest in the lease; and
(b)in any other case, as consideration for a separate transaction which is effected when the premium is deemed to be due and consists of a further part disposal of the freehold or other asset out of which the lease is granted.
(5)If under sub-paragraph (2) or (3) above a premium is deemed to have been received by the landlord, otherwise than as consideration for the surrender of the lease, and the landlord is a tenant under a lease the duration of which does not exceed 50 years, this Schedule shall apply—
(a)as if an amount equal to the amount of that premium deemed to have been received had been given by way of consideration for the grant of the part of the sublease covered by the period in respect of which the premium is deemed to have been paid; and
(b)as if that consideration were expenditure incurred by the sublessee and attributable to that part of the sublease under section 38(1)(b).”
(5)This section has effect as respects sums payable on or after 6th April 1996.
Marginal Citations