Capital Gains Tax Act 1979 (repealed 6.3.1992)

[F1 142A Disposal of assets in premiums trust fund etc. U.K.

(1) Subject to subsection (4) below, for the year 1972-73 and subsequent years of assessment the chargeable gains or allowable losses accruing on the disposal of assets forming part of a premiums trust fund shall be taken to be those allocated to the corresponding underwriting year.

(2) The amount of the gains or losses so allocated at the end of any accounting period shall be such proportion of the difference mentioned in subsection (3) below as is allocated to the underwriting year under the rules or practice of Lloyd’s.

(3) That difference is the difference between the valuations at the beginning and at the end of the accounting period of the assets forming part of the fund, the value at the beginning of the period of assets acquired during the period being taken as the cost of acquisition and the value at the end of the period of assets disposed of during the period being taken as the consideration for the disposal.

(4) Subsections (1) to (3) above do not apply to the computation of chargeable gains or allowable losses on the disposal of gilt-edged securities as defined in Schedule 2 to this Act or of qualifying corporate bonds as defined in section 64 of the Finance Act 1984.

[F2 (4A) Subsection (4B) below applies where the following state of affairs exists at the beginning of an accounting period or the end of an accounting period—

(a) securities have been transferred by the trustees of a premiums trust fund in pursuance of an arrangement mentioned in section 129(1) or (2) of the Taxes Act 1988 (stock lending),

(b) the transfer was made to enable another person to fulfil a contract or to make a transfer,

(c) securities have not been transferred in return, and

(d) the transfer made by the trustees constitutes a disposal which by virtue of section 149B(9) below is to be disregarded as there mentioned.

(4B) The securities transferred by the trustees shall be treated for the purposes of subsection (3) above as if they formed part of the premiums trust fund at the beginning concerned or the end concerned (as the case may be).]

(5) The Board may, by regulations made by statutory instrument which shall be subject to annulment in pursuance of a resolution of the House of Commons, provide—

(a) for the assessment and collection of tax charged in accordance with this section;

(b) for modifying the provisions of this section in relation to syndicates continuing for more than two years after the end of an underwriting year;

(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3

(d) for giving credit for foreign tax.]

[F4 (6) Regulations under subsection (5) above may make provision with respect to any year or years of assessment; and the year (or any of the years) may be the one in which the regulations are made or any year falling before or after that year.

(7) But the regulations may not make provision with respect to any year of assessment which precedes the next but one preceding the year of assessment in which the regulations are made.]

Subordinate Legislation Made

P1 S. 142A(5)(6) power exercised by S.I.1991/851.

Textual Amendments

F1 S. 142A(1)–(5) added by Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), Sch. 29 para. 24

F2 S. 142A(4A)(4B) inserted by Finance Act 1989 (c. 26, SIF 63:2), s. 91(2) in the case of transfers made by trustees after 18 August 1989 (by virtue of S.I. 1989 No. 1299)

F3 S. 142A(5)(c) repealed by Finance Act 1989 (c. 26, SIF 63:2), ss. 92(3), 187 and Sch. 17 Part VII

F4 S. 142A(6)(7) added by Finance Act 1989 (c. 26, SIF 63:2), s. 92(3)