http://www.legislation.gov.uk/id/ukpga/1979/14

SCHEDULES

SCHEDULE 7 Consequential Amendments

Section 157(2).

Taxes Management Act 1970 (c. 9)

1

The Taxes Management Act 1970 shall be amended as follows.

C12

In section 12(2) for paragraph (a) substitute—

a
any assets exempted by the following provisions of the Capital Gains Tax Act 1979, namely—
i
section 19(4) (rights to winnings from pool betting, lotteries or games with prizes),
ii
section 71 (government non-marketable securities),
iii
section 130, 131 or 133 (passenger vehicles, decorations for valour or gallant conduct and foreign currency for personal expenditure)

3

In section 28(1) for “section 41” (in both places) substitute “ section 15 ”, for “section 42” (in both places) substitute “ section 17 ”, and for “Finance Act 1965” substitute “ Capital Gains Tax Act 1979 ”.

Income and Corporation Taxes Act 1970 (c. 10)

2

1

The Taxes Act shall be amended as follows.

F2 C22

In section 270(3) for the words from “disposal” to the end of the subsection substitute—

“disposal, and the asset consists of specified securities, the company acquiring the asset shall be treated for the purposes of sections 67 to 70 of the Capital Gains Tax Act 1979 as acquiring it at the time when the other acquired it.”

C23

At the end of section 270 (in place of the subsection (6) inserted by paragraph 12 of Schedule 10 to the Finance Act 1971) insert—

6
In this section “specified securities” means securities which are gilt-edged securities as defined by Schedule 2 to the Capital Gains Tax Act 1979.

4

In section 279(1)(a) after “1965” insert “ but before 20th April 1977 ”.

Finance Act 1974 (c. 30)

F3 C33

For paragraph 18(6) of Schedule 3 to the Finance Act 1974 substitute—

6
The following provisions of the Capital Gains Tax Act 1979 shall, with any necessary modifications, apply for the purposes of this paragraph as they apply for the purposes of section 115 of that Act, namely—
a
subsections (3) to (8) of the said section 115,
b
section 119,
c
section 121.

F4 C44

For paragraph 19 of Schedule 3 to the Finance Act 1974 substitute—

19
1
Paragraph 18 above shall have effect subject to the provisions of this paragraph, in which—
a
the “tax reduction” means the reduction in the income tax or corporation tax to which the person carrying on the trade is chargeable which is made under sub-paragraph (3) of the said paragraph 18 in connection with a disposal of an asset (called “asset No. 1”);
b
the “expenditure reduction” means the related amount by which under sub-paragraph (4) of that paragraph, and apart from the provisions of this paragraph, the expenditure allowable in respect of another asset (called “asset No. 2”) is reduced;
c
any reference to an expenditure reduction of any amount being carried forward to any asset is a reference to a reduction of that amount in expenditure allowable in respect of that asset.
2
If asset No. 2 is a depreciating asset, the expenditure reduction shall not be carried forward, but—
a
when the claimant disposes of asset No. 2, or
b
when he ceases to use asset No. 2 for the purposes of a trade carried on by him, or
c
on the expiration of a period of ten years beginning with the acquisition of asset No. 2,
whichever event comes first. an amount equal to the tax reduction may be assessed to tax and recovered accordingly.
Any assessment to income tax or corporation tax under this paragraph shall be made under Case VI of Schedule D.
3
If, in the circumstances specified in sub-paragraph (4) below, the claimant acquires an asset (called “asset No. 3”) which is not a depreciating asset, and so claims under paragraph 18 above—
a
the expenditure reduction shall be carried forward to asset No. 3, and
b
the claim which applies to asset No. 2 shall be treated as withdrawn (so that sub-paragraph (2) above does not apply).
4
The circumstances are that asset No. 3 is acquired not later than the occurrence of whichever of the events mentioned in sub-paragraph (2) above comes first and, assuming—
a
that the consideration for asset No. 1 was applied in acquiring asset No. 3, and
b
that the time between the disposal of asset No. 1 and the acquisition of asset No. 3 was within the time limited by section 115(3) of the Capital Gains Tax Act 1979 as applied by paragraph 18(6) above,
the whole amount of the expenditure reduction could be carried forward from asset No. 1 to asset No. 3; and the claim under sub-paragraph (3) above shall be accepted as if those assumptions were true.
5
For the purposes of this paragraph an asset is a depreciating asset at any time if—
a
at that time it is a wasting asset as defined in section 37(1) of the Capital Gains Tax Act 1979, or
b
within the period of ten years beginning at that time it will become a wasting asset (so defined).
6
This paragraph shall be construed as one with paragraph 18 above.

5F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6 Development Land Tax Act 1976 (c. 24)

Annotations:

Amendments (Textual)

Sch. 7 paras. 3, 4, 6 repealed by Finance Act 1985 (c. 54), s. 98(6) and Sch. 27 Pt. X in relation to disposals of interests in land taking place on or after 19 March 1985 but without affecting the construction of Capital Gains Tax Act 1979 (c. 14), Sch. 5 para. 9

6

1

Paragraph 5 of Schedule 6 to the Development Land Tax Act 1976 shall be amended as follows.

2

In sub-paragraph (1)(a)—

a

for “section 33 of the Finance Act 1965” substitute “ sections 115 to 121 of the Capital Gains Tax Act 1979 ”, and

b

for “applies” substitute “ apply ”.

3

In sub-paragraph (2) for “section 33 of the Finance Act 1965” substitute “ sections 115 to 121 of the Capital Gains Tax Act 1979 ”.

4

In sub-paragraph (4)—

a

for “section 33 of the Finance Act 1965 has effect subject to the provisions of paragraph 16 of Schedule 19 to the Finance Act 1969” substitute “ sections 115 and 116 of the Capital Gains Tax Act 1979 have effect subject to the provisions of section 117 of that Act ”, and

b

for “sub-paragraph (2) of that paragraph accrues in accordance with that sub-paragraph” substitute “ subsection (2) of the said section 117 accrues in accordance with that sub-section ”.

5

In sub-paragraph (4)(a) for “that sub-paragraph” substitute “ subsection (2) of the said section 117 ”.

6

In sub-paragraph (4)(b) for “sub-paragraph (3) of that paragraph” substitute “ subsection (3) of the said section 117 ”.

7

In sub-paragraph (6)—

a

for “section 33 of the Finance Act 1965” substitute “ sections 115 to 121 of the Capital Gains Tax Act 1979 ”, and

b

for “paragraph 16 of Schedule 19 to the Finance Act 1969” substitute “ section 117 of that Act ”.

Finance Act 1976 (c. 40)

C57

For section 54(5) of the Finance Act 1976 substitute—

5
Subsection (6) of section 84 of the Capital Gains Tax Act 1979 (gilt-edged securities not issued until after the date when shares are compulsorily acquired) shall apply in relation to this section as it applies in relation to that section, and in this section—
“gilt-edged securities” has the meaning given by Schedule 2 to that Act; “shares” includes securities within the meaning of section 82 of that Act.

Translation of references to Part III of Finance Act 1965

8

In the enactments specified in the Table below substitute “ the Capital Gains Tax Act 1979 ” (or “ The Capital Gains Tax Act 1979 ” if at the beginning of a sentence)—

a

in the contexts in Part I of the Table, for “Part III of the Finance Act 1965”,

b

in the contexts in Part II of the Table, for “Part III of the Finance Act 1965”, together with the words “(chargeable gains)” or “(capital gains)” or “(capital gains tax)” or “(tax on chargeable gains)” as the case may be.

TABLE Part I

1

In the Taxes Management Act 1970 (c. 9)

section 11(1)(b)
section 47(1)
section 57(1)(a)
section 111(1)
section 118(1), in the definitions of “chargeable gain” and of “the Taxes Acts”
section 119(4).

2

In the Income and Corporation Taxes Act 1970 (c. 10)

. . . F7
section 268(2)
section 268A(2)
section 273(1)
section 278(3)
section 279(2)
. . . F7
. . . F7
section 540(2).

3

In the Finance Act 1970 (c. 24)

. . . F8
Schedule 6 paragraph 9.

4F9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5

In the Finance Act 1973 (c. 51)

section 38(3)
section 59(3)(c).

F106

In the Finance Act 1974 (c. 30)

F10section 40(3)(a)
F10section 45(1)
F10section 57(3)(c)
F10Schedule 3 paragraph 18(4)
F10Schedule 9 paragraph 2(3)
F10Schedule 9 paragraph 17.

7F11. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8F12. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

In the Finance Act 1976 (c. 40)

. . . F13
section 132(3)(c).

10

In the Finance Act 1977 (c. 36)

section 42(1) (see also entry above for section 268A(2) of the Taxes Act)
. . . F14

Part II References to Part III of Finance Act 1965 Followed by Descriptive Words

1

Section 74(2) of the Post Office Act 1969 (c. 48).

2

Section 27(1) of the Taxes Management Act 1970 (c. 9).

3F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4