an individual (“the transferor”) makes a disposal otherwise than under a bargain at arm’s length of an asset within subsection (2) below, and

a claim for relief under this section is made by the transferor and the person who acquires the asset (“the transferee”) or, where the trustees of a settlement are the transferee, by the transferor alone,

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

in the case of a disposal of shares or securities, the transferee is a company,

in the case of a disposal of qualifying corporate bonds, a gain is deemed to accrue by virtue of section 116(10)(b), or

subsection (3) of section 260 applies in relation to the disposal (or would apply if a claim for relief were duly made under that section).

the amount of any chargeable gain which, apart from this section, would accrue to the transferor on the disposal, and

the amount of the consideration for which, apart from this section, the transferee would be regarded for the purposes of capital gains tax as having acquired the asset or, as the case may be, the shares or securities,

there is actual consideration (as opposed to the consideration equal to the market value which is deemed to be given by virtue of section 17(1)) for a disposal in respect of which a claim for relief is made under this section, and

that actual consideration exceeds the sums allowable as a deduction under section 38,

the disposal is a F17direct or indirect disposal of UK land which meets the non-residence condition, and

the transferee is resident in the United Kingdom.

a disposal on which a gain accrues that falls to be dealt with by section 1A(3) because the asset disposed of is within paragraph (b) or (c) of that subsection, or

a disposal on which a gain accrues that falls to be dealt with by section 1A(1) in accordance with section 1G(2) because the asset disposed of is within section 1A(3)(b) or (c).

“personal company”, in relation to an individual, means a company the voting rights in which are exercisable, as to not less than 5 per cent., by that individual;

“holding company”, “trading company” and “trading group” have the meaning given by section 165A; and

“trade”, “profession” and “vocation” have the same meaning as in the Income Tax Acts.

the inheritance tax attributable to the value of the asset, and

the amount of the chargeable gain as computed apart from this subsection,

falls to be redetermined in consequence of the transferor’s death within 7 years of making the chargeable transfer in question, or

is otherwise varied,

in the course of, or for the purposes of, a trade being carried on by it,

for the purposes of a trade that it is preparing to carry on,

with a view to its acquiring or starting to carry on a trade, or

such as would make that company a 51% subsidiary of the acquiring company, or

such as would give the acquiring company a qualifying shareholding in a joint venture company without making the two companies members of the same group of companies.

any holding by it of shares in the joint venture company is to be disregarded, and

it is to be treated as carrying on an appropriate proportion of the activities of the joint venture company or, where the joint venture company is the holding company of a trading group, of the activities of that group;

one or more of whose members carry on trading activities, and

the activities of whose members, taken together, do not include to a substantial extent activities other than trading activities.

in the course of, or for the purposes of, a trade being carried on by any member of the group,

for the purposes of a trade that any member of the group is preparing to carry on,

with a view to any member of the group acquiring or starting to carry on a trade, or

such as would make that company a member of the same group of companies as the acquiring company, or

such as would give the acquiring company a qualifying shareholding in a joint venture company without making the joint venture company a member of the same group of companies as the acquiring company.

every holding of shares in the joint venture company by a member of the group having a qualifying shareholding in it is to be disregarded, and

each member of the group having such a qualifying shareholding is to be treated as carrying on an appropriate proportion of the activities of the joint venture company or, where the joint venture company is a holding company of a trading group, of the activities of that group;

though resident F41... in the United Kingdom, is regarded for the purposes of any double taxation relief arrangements as resident in a territory outside the United Kingdom, and

by virtue of the arrangements would not be liable in the United Kingdom to tax on a gain arising on a disposal of the asset occurring immediately after its acquisition.

is F7not resident in the United Kingdom, and

F66is or is connected with the person making the disposal.

he is regarded for the purposes of any double taxation relief arrangements as resident in a territory outside the United Kingdom, and

by virtue of the arrangements he would not be liable in the United Kingdom to tax on a gain arising on a disposal of the assets.

a gain would accrue to the transferor on the disposal, and

on the assumption that the disposal is a direct or indirect disposal of UK land which meets the non-residence condition (whether or not that is the case), that gain would be a relevant gain (see subsections (6) and (7)).

section 165(4), as modified by subsection (2) of this section, has effect in relation to the disposal as if the reference to “chargeable gain” were a reference to F23“relevant gain”,

section 165(6) has effect in relation to the disposal as if the references to “chargeable gain” were references to F38“relevant gain”, and

section 165(7) has effect in relation to the disposal as if the reference to “the excess referred to in paragraph (b) above” were a reference to F62“the relevant gain which, ignoring this section and section 17(1), would accrue to the transferor on the disposal”.

is deemed to accrue to the transferee (in addition to any gain or loss that actually accrues on that subsequent disposal), and

(if that would not otherwise be the case) is to be treated as a relevant gain.

the reference to “the chargeable gain accruing to the transferee on the disposal of the asset” were a reference to the chargeable gain accruing on the disposal as computed apart from subsection (4), and

a disposal on which a gain accrues that falls to be dealt with by section 1A(3) because the asset disposed of is within paragraph (b) or (c) of that subsection, or

a disposal on which a gain accrues that falls to be dealt with by section 1A(1) in accordance with section 1G(2) because the asset disposed of is within section 1A(3)(b) or (c).

relief is given under section 165 in respect of a disposal to an individual or under section 260 in respect of a disposal to an individual (“the relevant disposal”); and

the transferee is resident in the United Kingdom at the time of that disposal; and

at a time when he has not disposed of the asset in question, the transferee F45ceases to be resident in the United Kingdom,

the reason for his F16ceasing to be resident in the United Kingdom is that he works in an employment or office all the duties of which are performed outside the United Kingdom, and

he again becomes resident F11... in the United Kingdom within the period of 3 years from the time when he ceases to be so, without having meanwhile disposed of the asset in question;

an interest in UK land is deemed to have been disposed of under section 168(1) by a transferee at any time, and

the transferee makes an election under this subsection.

at the material time the trustees to whom the disposal is made F2are resident F21... in the United Kingdom F30... ; and

“the material time” means the time of the relevant disposal; and

a “notional disposal” means a disposal by the trustees of the asset which was the subject of the relevant disposal.

on a disposal to members of a partnership, and

for a consideration which is treated as reduced under section 165(4)(b) or 260(3)(b),

made by a person (“the transferor”) to the trustees of a settlement, and

in respect of which Condition 1 or Condition 2 below is satisfied.

there is a settlor (see section 169E) who has an interest in the settlement (see section 169F), or

an arrangement (see section 169G) subsists under which such an interest will or may be acquired by a settlor.

a chargeable gain would (assuming that neither section 165(4) nor section 260(3) applied in relation to the relevant disposal) accrue to the transferor on that disposal,

in computing the gain, the allowable expenditure would to any extent fall to be reduced in consequence, directly or indirectly, of a claim under section 165 or 260 in respect of an earlier disposal made by an individual (whether or not to the transferor), and

made by a person (“the transferor”) to the trustees of a settlement,

in relation to which section 165(4) or 260(3) applies, or would apart from this section apply, and

in respect of which Condition 1 or Condition 2 below is satisfied.

there is a settlor who has an interest in the settlement, or

an arrangement subsists under which such an interest will or may be acquired by a settlor.

in computing the chargeable gain which would (assuming that neither section 165(4) nor section 260(3) applied in relation to the relevant disposal) accrue to the transferor on that disposal, the allowable expenditure would fall to be reduced,

that reduction would to any extent fall to be made in consequence, directly or indirectly, of a claim under section 165 or 260 in respect of an earlier disposal made by an individual (whether or not to the transferor), and

the transferor is an individual, and

he dies before the material time.

the trustees of the settlement, or

any person whose title to any property to any extent derives, directly or indirectly, from them,

beginning immediately after the making of the relevant disposal, and

ending six years after the end of the year of assessment in which that disposal was made.

the settlement, or

any part of the settlement,

if any of the property is applied for the benefit of a beneficiary, it is applied for the disabled person's benefit, and

the trustees' having powers that enable them to apply in any tax year otherwise than for the benefit of the disabled person amounts (whether consisting of income or capital, or both) not exceeding the annual limit,

the trustees' having the powers conferred by section 32 of the Trustee Act 1925 (powers of advancement),

the trustees' having those powers but free from, or subject to a less restrictive limitation than, the limitation imposed by proviso (a) of subsection (1) of that section,

the trustees' having the powers conferred by section 33 of the Trustee Act (Northern Ireland) 1958 (corresponding provision for Northern Ireland),

the trustees' having those powers but free from, or subject to a less restrictive limitation than, the limitation imposed by subsection (1)(a) of that section, or

the trustees' having powers to the like effect as the powers mentioned in any of paragraphs (b) to (e).

£3,000, and

3% of the amount that is the maximum value of the settled property during the tax year in question.

specify circumstances in which subsection (4B)(a) is, or is not, to apply in relation to a trust, and

amend the definition of “the annual limit” in subsection (4C).

make different provision for different cases, and

contain transitional and saving provision.

he has an interest in the settlement, or

an arrangement subsists under which such an interest will or may be acquired by him;

is a beneficiary under the settlement, or

would be such a beneficiary if he had the interest in the settlement by virtue of which subsection (5)(b) above applies in relation to him.

he is an individual, and

the settled property consists of, or includes, property originating from him.

property which that settlor has provided directly or indirectly for the purposes of the settlement, and

property which wholly or partly represents that property or any part of it.

include references to property which has been provided directly or indirectly by another person in pursuance of reciprocal arrangements with that settlor, but

do not include references to property which that settlor has provided directly or indirectly in pursuance of reciprocal arrangements with another person.

any property which F61is or may at any time be comprised in the settlement, or

any derived property,

any property which is comprised in the settlement, or

any derived property.

any property which is or may at any time be comprised in the settlement, or any derived property, is, or will or may become, payable to or applicable for the benefit of a child of the individual, at a time when that child is a dependent child of his, in any circumstances whatsoever, or

a dependent child of the individual enjoys a benefit deriving directly or indirectly from any property which is comprised in the settlement or any derived property.

the widow or widower F44or surviving civil partner of the individual.

“child” includes a stepchild.

in the case of a marriage settlement or civil partnership settlement, the death of both parties to the marriage or civil partnership and of all or any of the children of the family of the parties to the marriage or civil partnership, or

the death of a child of the individual where the child had become beneficially entitled to the property or any derived property at an age not exceeding 25.

income from that property,

income from property which is derived property by virtue of paragraph (b) above.