{
  "url": "https://openlegislation.uk/capital-gains-tax-act-1979-repealed-631992/section-56",
  "json_url": "https://openlegislation.uk/capital-gains-tax-act-1979-repealed-631992/section-56.json",
  "legislation": "ukpga/1979/14",
  "legislation_title": "Capital Gains Tax Act 1979 (repealed 6.3.1992)",
  "legislation_url": "https://openlegislation.uk/capital-gains-tax-act-1979-repealed-631992",
  "path": "section/56",
  "kind": "section",
  "number": "56",
  "heading": "Death of life tenant: exclusion of chargeable gain.",
  "text": "(1) Where, by virtue of section 54(1) above, the assets forming part of any settled property are deemed to be disposed of and re-acquired by the trustee on the occasion when a person becomes (or would but for a disability become) absolutely entitled thereto as against the trustee, then, if that occasion is the termination of a life interest (within the meaning of section 55 (above) by the death of the person entitled to that interest—\n(a) no chargeable gain shall accrue on the disposal, and\n(b) if on the death the property reverts to the disponer the disposal and re-acquisition under that subsection shall be deemed to be for such consideration as to secure that neither a gain nor a loss accrues to the trustee, and shall, if the trustee had first acquired the property at a date earlier than 6th April 1965, be deemed to be at that earlier date.\n(1A) Where the life interest referred to in subsection (1) above is an interest in part only of the settled property to which section 54 applies, subsection (1)(a) above shall not apply but any chargeable gain accruing on the disposal shall be reduced by a proportion corresponding to that represented by the part.\n(1B) The last sentence of subsection (1) of section 55 above, and subsection (6) of that section, shall apply for the purposes of subsection (1A) above as they apply for the purposes of section 55(1).\n(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words inserted by Finance Act 1981 (c. 35, SIF 63:2), s. 87(2) in respect of occurrences on or after 10 March 1981"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "S. 56(1A)(1B) inserted by Finance Act 1982 (c. 39, SIF 63:2), s. 84 in respect of interests terminating on or after 6 April 1982"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "S. 56(2) repealed by Finance Act 1982 (c. 39, SIF 63:2), ss. 84(2), 157 and Sch. 22 Part VI in relation to interests terminating on or after 6 April 1982"
    },
    {
      "type": "C",
      "label": "C1",
      "text": "See Finance Act 1988 (c. 39, SIF 63;1, 2), s. 96 and Sch. 8 para. 1"
    },
    {
      "type": "C",
      "label": "C2",
      "text": "See Finance Act 1988 (c. 39, SIF 63;1, 2), ss. 100, 109 and Sch. 10"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1979/14/section/56",
    "retrieved_at": "2026-10-29T10:18:25.768570+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}