Finance Act 2003

Part 2 Annual exempt amount

3 (1) Section 3 of the Taxation of Chargeable Gains Act 1992 (c. 12) is amended as follows.

(2) Omit subsection (6).

(3) In subsection (7) for “subsections (1) to (6)” substitute “subsections (1) to (5C)”.

(4) After that subsection insert—

“(7A) As they apply by virtue of subsection (7) above—

(a) subsection (5A) has effect with the omission of paragraph (b), and

(b) subsection (5B) has effect with the omission of the words “or (b)”.”.

4 (1) Paragraph 1 of Schedule 1 to that Act is amended as follows.

(2) In sub-paragraph (1), in the words following paragraph (b)—

(a) for “section 3(1) to (6)” substitute “sections 3(1) to (5C) and 3A”;

(b) at the end insert “, but with the modifications specified in this paragraph”.

(3) After sub-paragraph (2) insert—

“(2A) As they apply by virtue of sub-paragraph (1) above—

(a) section 3(5A) has effect with the omission of paragraph (b), and

(b) section 3(5B) has effect with the omission of the words “or (b)”.”.

(4) In sub-paragraph (3)—

(a) for “section 3” substitute “sections 3 and 3A(1)(a)”;

(b) after “the exempt amount for the year”, where it first occurs, insert “(except the one in section 3(2))”.

(5) In sub-paragraph (7) for “An inspector” substitute “An officer of the Board”.

5 (1) Paragraph 2 of that Schedule is amended as follows.

(2) In sub-paragraph (1) for “section 3(1) to (6)” substitute “sections 3(1) to (5C) and 3A”.

(3) In sub-paragraph (2)—

(a) for “subsections (1) and (5)” substitute “section 3(1), (5A), (5B) and (5C)”;

(b) after “section 3(1), (5A), (5B) and (5C)” insert “and section 3A(1)(a)”.

(4) After sub-paragraph (2) insert—

“(2A) As they apply by virtue of sub-paragraph (1) above—

(a) section 3(5A) has effect with the omission of paragraph (b), and

(b) section 3(5B) has effect with the omission of the words “or (b)”.”.

(5) Omit sub-paragraph (3).

(6) In sub-paragraph (9) for “An inspector” substitute “An officer of the Board”.

6 In the first column of the Table in section 98 of the Taxes Management Act 1970 (c. 9) (penalty for failure to furnish particulars etc), at the appropriate place insert—

“Paragraph 1(7) of Schedule 1 to the 1992 Act.”.