5(1)Section 169N (amount of relief: general) is amended as follows.U.K.
(2)For subsections (2) to (4) substitute—
“(2)The resulting amount is to be treated for the purposes of this Act as a chargeable gain accruing at the time of the disposal to the individual or trustees by whom the claim is made.
(3)The rate of capital gains tax in respect of that gain is 10%, but this is subject to subsections (4) to (4B).
(4)Subsections (4A) and (4B) apply if the aggregate of—
(a)the gain mentioned in subsection (2), and
(b)the total of so much of each amount resulting under subsection (1) by virtue of its operation in relation to earlier relevant qualifying business disposals (if any) as was—
(i)charged at the rate in subsection (3), or
(ii)subject to reduction under subsection (2) of this section as originally enacted,
exceeds £5 million.
(4A)The rate in subsection (3) is to apply only to so much (if any) of the gain mentioned in subsection (2) as (when added to the total mentioned in subsection (4)(b)) does not exceed £5 million.
(4B)Section 4 (rates of capital gains tax) is to apply to so much of the gain mentioned in subsection (2) as is not subject to the rate in subsection (3).”
(3)In subsection (7), for “subsection (3)” substitute “ subsection (4) ”.