46(1)Section 47A (exemption for disposals by persons using cash basis) is amended as follows.U.K.
(2)For the heading substitute “ Exemption for certain disposals under, or after leaving, cash basis ”.
(3)In subsection (1), for “A to D” substitute “ A, B and D ”.
(4)For subsection (2) substitute—
“(2)Condition A is that the asset is not land.”
(5)In subsection (3), for “or vocation” substitute “ , vocation or property business ”.
(6)Omit subsection (4).
(7)For subsection (5) substitute—
“(5)Condition D is that relevant disposal proceeds—
(a)are brought into account as a receipt (whether or not on the cash basis) under section 96A(3I) of ITTOIA 2005 in calculating the profits of a trade, profession or vocation (capital receipts under, or after leaving, cash basis: trades, professions and vocations), or
(b)are brought into account as a receipt (whether or not on the cash basis) under section 307E(12) of that Act in calculating the profits of a property business (capital receipts under, or after leaving, cash basis: property businesses).
(5A)“Relevant disposal proceeds” means disposal proceeds as mentioned in section 96A(3F) of ITTOIA 2005 or (as the case may be) section 307E(9) of that Act which arise from the disposal mentioned in subsection (1).”
(8)For subsection (6) substitute—
“(6)Subsection (7) applies in the case of the disposal of, or of an interest in, an asset—
(a)which, in the period of ownership of the person making the disposal—
(i)has been used partly for the purposes of the trade, profession or vocation and partly for other purposes, or
(ii)has been used for the purposes of the trade, profession or vocation for part of that period, or
(b)expenditure on which by the person has qualified in part only for capital allowances.”
(9)In subsection (7)—
(a)in paragraph (a), for “was, or (as the case may be)” to the end substitute “ qualified for capital allowances ”, and
(b)in paragraph (c), at the end insert “, or to the expenditure qualifying for capital allowances.
(10)After subsection (7) insert—
“(8)In this section “property business” means a UK property business or an overseas property business within the meaning of Part 3 of ITTOIA 2005 (see sections 264 and 265 of that Act).”