SCHEDULES
SCHEDULE 2Capital gains tax reform
Abolition of “kink” test
58
1
Section 35 (assets held on 31 March 1982) is amended as follows.
2
In subsection (2)—
a
for “Subject to the following provisions of this section, in” substitute “
In
”
, and
b
for “him” substitute “
that person
”
.
3
After that subsection insert—
2A
For the purposes of corporation tax, subsection (2) above has effect subject to subsections (3) to (8) below (and see also subsections (9) and (10)).
4
In subsection (3)(d), for the words after “any of” substitute “
the no gain/no loss provisions.
”
5
In subsection (4), for “him” substitute “
that person
”
.
6
In subsection (5), for “him”
(in both places) substitute “
that person
”
.
7
In subsection (6), omit—
a
paragraph (a),
b
in paragraph (aa), “in the case of an election for the purposes of corporation tax,”, and
c
in paragraph (b), “in either case”.
8
In subsection (7), for “him” substitute “
that person
”
.
9
In subsection (9), after “effect” insert “
for the purposes of corporation tax
”
.
10
In subsection (10), insert at the end “
for the purposes of capital gains tax and corporation tax
”
.