Taxation of Chargeable Gains Act 1992

[F1 Temporary period during which applicable exemption conditions not met U.K.

Textual Amendments

F1 Sch. 5AAA inserted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 21

27 (1) This paragraph applies if— U.K.

(a) an election under paragraph 12 has been made in respect of a qualifying fund or qualifying company (“Q”),

(b) Q ceases at any time (“the relevant time”) to meet the applicable exemption conditions otherwise than as a result of the vehicle or appropriate entity ceasing to be UK property rich (see paragraph 12(2)(c) or (3)(b)),

(c) the election would (but for this paragraph) have, accordingly, ceased to have had effect under paragraph 20 from the relevant time,

(d) the relevant fund manager expects Q to meet the applicable exemption conditions within 30 days, and

(e) Q does meets those conditions within 30 days.

(2) The failure by Q to meet the applicable exemption conditions is to be ignored for the purposes of this Part of this Schedule.

(3) In this paragraph any reference to Q meeting the applicable exemption conditions within 30 days is to Q meeting those conditions before the end of the period of 30 days beginning with the day on which the relevant time falls.

(4) This paragraph does not apply on more than four occasions in any period of 12 months.

28 (1) This paragraph applies if— U.K.

(a) an election under paragraph 12 has been made in respect of a qualifying fund or qualifying company,

(b) but for this paragraph, the election would, as a result of paragraph 20, have ceased to have effect from a particular time for all purposes of this Part of this Schedule (“the relevant time”),

(c) the relevant fund manager expects the failure to meet the applicable exemption conditions to last for a temporary period, and

(d) at the end of the temporary period, the qualifying fund or qualifying company does meet those conditions.

(2) It is to be assumed that, for the purposes of any provision of this Part of this Schedule other than paragraph 22, the qualifying fund or qualifying company continues to meet the applicable exemption conditions during the temporary period.

(3) Accordingly—

(a) a deemed disposal occurs under paragraph 22 by reference to the failure to meet the applicable exemption conditions, but

(b) subject to that, the election continues to have effect during the temporary period.

(4) A period is not to be regarded as a temporary period for the purposes of this paragraph if it is longer than a period of 9 months beginning with the relevant time.

(5) This paragraph does not apply if paragraph 27 applies.

29 (1) This paragraph applies if paragraph 28 has applied in relation to a qualifying fund or qualifying company on one or more occasions. U.K.

(2) Paragraph 23(8) has effect as if, for the words from “at—” to the end, there were substituted “ when the relevant fund is wound up. ”]