Paragraph 1 C1
United Kingdom
This paragraph applies where—
there is a disposal of an asset which is, or is an interest in, agricultural property within the meaning of F1Chapter II of Part V of the Capital Transfer Tax Act 1984 (capital transfer tax relief for agricultural property), and
apart from this paragraph, the disposal would not fall within F2section 126(1) of this Act by reason only that the agricultural property is not used for the purposes of a trade carried on as mentioned in section 126(1A)(a).
Where this paragraph applies, section 126(1) of this Act shall apply in relation to the disposal if the circumstances are such that a reduction F3at the rate of 50 per cent. in respect of the asset—
is made under Chapter II of Part V of the Capital Transfer Tax Act 1984 in relation to a chargeable transfer taking place on the occasion of the disposal, or
would be so made but for section 124A of that Act (assuming, where there is no chargeable transfer on that occasion, that there were).
Annotations
Textual amendments
- F1
Words substituted by Inheritance Tax Act 1984 (c. 51), s. 276 and Sch. 8 para. 12
- F2
Words substituted by Finance Act 1989 (c. 26, SIF 63:2), s. 124 and Sch. 14 para. 3(2) in relation to disposals on or after 14 March 1989 (except where relief given under Finance Act 1980 (c. 48, SIF 63:1), s. 79 in respect of a disposal before that date)
- F3
Words substituted by Inheritance Tax Act 1984 (c. 51), s. 276 and Sch. 8 para. 12 and repealed by Finance Act 1989 (c. 26, SIF 63:2), ss. 124, 187, Schs. 14 and 17 Part VII in relation to disposals on or after 14 March 1989 (except where relief given under Finance Act 1980 (c. 48, SIF 63:1), s. 79 in respect of a disposal before that date)
- F4
Words repealed by Finance Act 1981 (c. 35, SIF 63:2), s. 139 and Sch. 19 Pt. VIII
- F5
“, or” inserted by Finance Act 1989 (c. 26, SIF 63:2), s. 124 and Sch. 14 para. 3(2) in relation to disposals on or after 14 March 1989 (except where relief given under Finance Act 1980 (c. 48, SIF 63:1), s. 79 in respect of a disposal before that date)
- F6
Sch. 4 para. 1(2)(c) inserted by Finance Act 1989 (c. 26, SIF 63:2), s. 124 and Sch. 14 para. 3(2) in relation to disposals on or after 14 March 1989 (except where relief given under Finance Act 1980 (c. 48, SIF 63:1), s. 79 in respect of a disposal before that date)
Modifications
- C1
See Finance Act 1986 (c. 41), s. 100 for occasions when Capital Transfer Tax Act 1984 (c. 51, SIF 65) referred to as Inheritance Tax Act 1984 (c. 51)
Notes on the whole Act
Textual amendments
- F1
Act repealed (6.3.1992 with effect as mentioned in s. 289(1)(2) of the repealing Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch.12 (with s. 201(3), Sch. 11 paras. 20, 22, 26(2), 27 and with saving in Sch. 11 para. 24(2)) and subject to an amendment (prosp.) by Museum and Galleries Act 1992 (c. 44), s. 11(2), Sch. 8 Pt. I para. 1(1)(2)(7), and amendments by: Disability Living Allowance and Disability Working Allowance Act 1991 (c. 21), s. 4(2), Sch. 2 para. 9(1)(2) (in force 6.4.1992 by S.I. 1991/2617, art. 2(f)); S.I. 1991/2874, art. 2 (in force 6.4.1992 by S.R. 1992/94, art. 2); Social Security (Consequential Provisions) Act 1992 (c. 6), s. 4, Sch. 2 para. 52(a)(b) (in force 1.7.1992 by s. 7(2) of the amending Act); Social Security (Consequential Provisions) (Northern Ireland) Act 1992 (c. 9), s. 4, Sch. 2 para. 20(a)(b) (in force 1.7.1992 by s. 7(2) of the amending Act); Finance (No. 2) Act 1992 (c. 48), ss. 35(2), 47, 48, 56, 77, Sch. 9 para. 20(1)(inserting ss. 143A and 143B), Sch. 17 paras. 3, 6(2)(5), 7, (the amendments coming into force 16.7.1992 except for the amendment by s. 56, Sch. 9 para. 20(1) which comes into force on 19.2.1993 by S.I. 1993/236, art. 2); and amendments (retrospective to 1.1.1992) by ss. 35(2), 47, 48 of the same 1992 Act, and amendments (27.7.1993 with effect as mentioned in ss. 84(3), 86(4), 88(4), 105(4) of the amending Act) by 1993 c. 34, ss. 84(3), 86(4), 88(4)(a)(b), 105(3)(4)