SCHEDULES

SCHEDULE 4 Relief for Gifts of Business Assets

Part I Agricultural Property and Settled Property

Agricultural property

C11

1

This paragraph applies where—

a

there is a disposal of an asset which is, or is an interest in, agricultural property within the meaning of F2Chapter II of Part V of the Capital Transfer Tax Act 1984 (capital transfer tax relief for agricultural property), and

b

apart from this paragraph, the disposal would not fall within F3section 126(1) of this Act by reason only that the agricultural property is not used for the purposes of a trade carried on as mentioned in F3section 126(1A)(a).

2

Where this paragraph applies, section 126(1) of this Act shall apply in relation to the disposal if the circumstances are such that a reduction F4at the rate of 50 per cent. in respect of the asset—

a

is made under F2Chapter II of Part V of the Capital Transfer Tax Act 1984 in relation to a chargeable transfer taking place on the occasion of the disposal, or

b

would be so made if there were a chargeable transfer on that . . . F5F6, or

F7c

would be so made but for section 124A of that Act (assuming, where there is no chargeable transfer on that occasion, that there were).