Paragraph 14 Paragraphs 11 to 13: supplementary provision

United Kingdom

(1)

A contract is an excluded contract for the purposes of paragraphs 11 to 13 if—

(a)

obtaining an advantage by reason of the application of section 28 (1) of TCGA 1992 was no purpose of entering into the contract, and

(b)

where the parties to the contract are connected persons, the contract was entered into wholly for commercial reasons.

(2)

A contract is not to be regarded as an excluded contract for the purposes of paragraphs 11 to 13 unless the person making the transfer makes a claim which includes a statement that the contract meets the conditions to be an excluded contract.

(3)

But no claim is required if the total amount of—

(a)

the chargeable gain accruing on the disposal, and

(b)

the chargeable gains accruing on all other disposals made under excluded contracts (including contracts which are excluded contracts for the purposes of paragraph 7),

does not exceed £100,000.

(4)

For this purpose the amount of any gain accruing on a qualifying business disposal is to be taken to be the amount of the gain under section 169N (2) of TCGA 1992.

(5)

If the person making the transfer referred to in paragraphs 11 to 13 makes—

(a)

a claim under section 169M of TCGA 1992 in relation to a qualifying business disposal (business asset disposal relief), or

(b)

a claim under section 169VM of that Act (investors’ relief) in relation to a disposal,

section 169M (2) and (3) of that Act, or (as the case may be) section 169VM(1) and (2) of that Act, apply to a claim under sub-paragraph (2) in relation to the disposal as they apply to a claim under the section concerned.

(6)

Any reference in paragraphs 11 to 13 (or this paragraph) to the transfer of an asset includes its conveyance.

(7)

In this paragraph “qualifying business disposal” has the meaning given by Chapter 3 of Part 5 of TCGA 1992.