The Capital Gains Tax (Parallel Pooling) Regulations 1986

EXPLANATORY NOTE

The Finance Act 1985 by the provisions of section 68 and Schedule 19 extended the indexation relief for capital gains tax to take full account of inflation throughout the period of ownership of an asset where it was acquired on or after 1st March 1982 or, in the case of assets acquired earlier, for the period since March 1982. The Act empowered the Treasury to extend, by Regulations, the relief to certain companies which, under earlier legislation, had elected to have certain securities of the same class pooled (called “parallel pooling”) so as to be treated as a single asset; the Regulations are to apply to such securities of a company only if it shall not have revoked its election by 31st March 1987 (or within such further time as the Commissioners of Inland Revenue may allow).

These Regulations extend the relief to those companies.

Regulation 1 provides the title and commencement date.

Regulation 2 contains definitions.

Regulation 3 describes the scope of the Regulations and the main conditions for relief.

Regulations 4 to 9 make provision for the identification, out of the previously pooled holdings, of holdings of securities of those categories to which the above provisions of the Finance Act 1985 will apply.

Regulation 10 introduces the Schedule which provides examples of the operation of these Regulations.