Search Legislation

Finance Act 1990

Status:

This is the original version (as it was originally enacted).

38Chargeable event when bonds owned

(1)Subsection (3) below applies where—

(a)paragraphs (a) to (c) of section 36(1) above are fulfilled, and

(b)the condition set out below is fulfilled.

(2)The condition is that—

(a)all the replacement assets were shares (new shares) in a company or companies,

(b)there has been a transaction to which paragraph 10(1) of Schedule 13 to the [1984 c. 43.] Finance Act 1984 applies and as regards which all the new shares constitute the old asset and qualifying corporate bonds constitute the new asset, and

(c)at the time the chargeable event occurs, the claimant or a person then connected with him is beneficially entitled to all the bonds.

(3)In a case where this subsection applies, a chargeable gain shall be deemed to have accrued to the claimant or connected person (as the case may be); and the gain shall be deemed to have accrued immediately before the time when the chargeable event occurs and to be of an amount equal to the relevant amount.

(4)The relevant amount is an amount equal to the lesser of—

(a)the first amount, and

(b)the second amount.

(5)The first amount is—

(a)the amount of the chargeable gain that would be deemed to accrue under paragraph 10(1)(b) of Schedule 13 to the Finance Act 1984 if there were a disposal of all the bonds at the time the chargeable event occurs, or

(b)nil, if an allowable loss would be so deemed to accrue if there were such a disposal.

(6)The second amount is an amount equal to—

(a)the amount by which the amount or value of the consideration mentioned in section 33(1)(b) above was treated as reduced by virtue of that provision (where it applied), or

(b)the amount by which the amount or value of the consideration mentioned in section 33(3)(b) above was treated as reduced by virtue of that provision (where it applied).

(7)In a case where subsection (3) above would apply if “all the” in subsection (2) above (in one or more places) read “any of the”, subsection (3) shall nevertheless apply, but as if—

(a)in subsection (5) above “all the bonds” read “the bonds concerned”,

(b)the second amount were reduced to whatever amount is just and reasonable, and

(c)the relevant amount were reduced accordingly.

(8)Subsection (9) below applies where—

(a)subsection (3) above applies (whether or not by virtue of subsection (7) above), and

(b)before the time when the chargeable event occurs anything has happened as regards any of the new shares, or any of the bonds, such that it can be said that a charge has accrued in respect of any of the gain carried forward by virtue of section 33(1) or (3) above.

(9)If in such a case it is just and reasonable for subsection (3) above to apply as follows, it shall apply as if—

(a)the second amount were reduced (or further reduced) to whatever amount is just and reasonable, and

(b)the relevant amount were reduced (or further reduced) accordingly (if the second amount is less than the first amount).

(10)But nothing in subsection (9) above shall have the effect of reducing the second amount below nil.

(11)For the purposes of subsection (8)(b) above the gain carried forward by virtue of section 33(1) or (3) above is the gain represented by the amount which by virtue of either of those provisions falls to be deducted from the expenditure allowable in computing a gain accruing on the disposal of replacement assets (that is, the amount found under subsection (6)(a) or (b) above, as the case may be).

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources