Finance Act 2009

Taxation of capital gains

Relief from taxation of capital gains: first transaction

10 (1) This paragraph applies if each of conditions A to C is met before the end of the period of 30 days beginning with the effective date of the first transaction.

(2) That transaction is not to be regarded for the purposes of TCGA 1992 as an acquisition by Q or a disposal by P.

(3) If condition C is met by virtue of Q and P having entered into a leaseback agreement, the granting of the lease or sub-lease is not to be regarded for the purposes of TCGA 1992 as an acquisition by P or a disposal by Q.

(4) Sub-paragraphs (2) and (3) are subject to paragraph 11 (treatment of transactions where any of conditions D to G is not met).

(5) Where the interest in the land is replaced as the bond asset by an interest in other land, this paragraph is subject to paragraph 18.

(6) This paragraph is also subject to paragraph 20.

11 (1) This paragraph applies if—

(a) the interest in the land is transferred by Q to P without conditions E and F having been met,

(b) the period mentioned in paragraph 5(11)(b) expires without each of those conditions having been met, or

(c) at any time it becomes apparent for any other reason that any of conditions E to G cannot or will not be met.

(2) This paragraph also applies where (in the case of an interest in land in the United Kingdom) condition D is not met.

(3) Where this paragraph applies, paragraph 10(2) and (3) (disregard of transactions for purposes of TCGA 1992) do not apply.

(4) Where, by virtue of sub-paragraph (3), any chargeable gain or loss is treated as accruing to a person, that gain or loss is to be treated as accruing—

(a) in the case mentioned in sub-paragraph (1)(a), immediately before the transfer from Q to P,

(b) in any case mentioned in paragraph (b) or (c) of sub-paragraph (1), at the time mentioned in that paragraph, and

(c) in the case mentioned in sub-paragraph (2), at the end of the period mentioned in paragraph 5(6).

Relief from taxation of capital gains: second transaction

12 (1) The second transaction is not to be regarded for the purposes of TCGA 1992 as an acquisition by P or a disposal by Q if—

(a) each of conditions A to C and E to G is met, and

(b) in the case of an interest in land in the United Kingdom, condition D is met.

(2) Where the interest in the land is replaced as the bond asset by an interest in other land, this paragraph is subject to paragraph 18.

(3) This paragraph is also subject to paragraph 20.