Section 40: Amount of limit
121.This section restricts the amount of credit which may be allowed against capital gains tax. It is based on section 796(1) and (2) of ICTA and section 277(1) of TCGA.
122.Subsection (3) brings the law into line with practice. See Change 4 in Annex 1 and the commentary on section 36(3).
123.In subsection (4), the definition of TG is the result of applying section 796(1)(a) of ICTA in relation to capital gains tax in accordance with section 277(1) of TCGA.
124.In section 796(1) of ICTA, the words “allowing for the making of any other income tax reduction under the Income Tax Acts” have no application to capital gains tax. They are therefore not rewritten in subsection (5).