The Capital Gains Tax Regulations 1967

EXPLANATORY NOTE

These Regulations make certain provisions in relation to capital gains tax appeals which are not covered by the general statutory provisions on appeals. In particular, they lay down procedures under which a question of market value or apportionment which affects the liability of two or more persons (for example, a donor and donee, or vendor and purchaser in a transaction not at arm's length) can be settled.

Regulations 3 to 7, 10, 17 and 18 lay down time limits for making an appeal against a capital gains tax assessment and deal with the assignment of proceedings to the appropriate body of Commissioners or other tribunal and with certain other procedural points.

Regulation 8 allows persons whose liability to capital gains tax may be affected by the market value of an asset or the apportionment of any amount or value which is a material question in an appeal (the terms are defined in Regulation 15) to apply to be joined in the appeal; it specifies how the appeal is to be conducted if the application to be joined as a third party is accepted.

Regulation 9 provides that, where a market value or apportionment has not yet become a material question in an appeal, but may affect the liability of two or more persons, any such person may apply to the Commissioners to determine the market value or apportionment; it also lays down that proceedings under this Regulation are to be governed by the ordinary appeal provisions (including Regulation 8).

Regulation 11 provides that a market value or apportionment affecting the liability of two or more persons, once finally determined on appeal, is conclusive in all capital gains tax proceedings for parties to the appeal and for persons who had the opportunity of being joined as parties. Regulation 12 adapts the provisions of section 510 of the Income Tax Act 1952 to allow the conclusive settlement of a question in an appeal (affecting two or more persons) by an agreement in writing.

Regulations 13 to 16 deal respectively with certain other persons who may be bound by a determination or agreement; fraud and wilful default; the interpretation of certain expressions (and the position of a non-resident); and provisions allowing the inspector to give notice of appeal proceedings and to disclose the relevant market value or apportionment to persons who may be entitled to be joined as third parties.