OpenLegislation

Capital Gains Tax Act 1979 (repealed 6.3.1992)

1979 c. 14 · Enacted 22 March 1979 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 6 April 1992.

Annotations to the whole text

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Act repealed (6.3.1992 with effect as mentioned in s. 289(1)(2) of the repealing Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch.12 (with s.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)

Contents

  1. Part I: General
  2. Capital gains tax and corporation tax
  3. 1Taxation of capital gains.
  4. Capital gains tax
  5. 2Persons chargeable.
  6. 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  7. 4Gains chargeable to tax.
  8. 5Exemption for first £3,000 of gains
  9. 6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  10. 7Time for payment of tax.
  11. 7APayment by instalments of tax on gifts.
  12. 8, 9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  13. The foreign element
  14. 10Double taxation relief.
  15. 11Allowance for foreign tax.
  16. 12Non-resident with United Kingdom branch or agency.
  17. 13Foreign assets: delayed remittances.
  18. 14Foreign assets of person with foreign domicile.
  19. 15Non-resident company.
  20. 16Non-resident group of companies.
  21. 17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  22. 18Residence etc. and location of assets.
  23. Part II: Gains and Losses
  24. Chapter I: Disposals
  25. 19Disposal of assets.
  26. 20Capital sums derived from assets.
  27. 21Capital sums: compensation and insurance money.
  28. 22Assets lost or destroyed, or whose value becomes negligible.
  29. 23Mortgages and charges.
  30. 24Hire-purchase.
  31. 25Value shifting.
  32. 26Value shifting: further provisions.
  33. 26AValue shifting: distributions within a group followed by a disposal of shares.
  34. 26BSection 26B
  35. 26CSection 26C
  36. 26DSection 26D
  37. 27Time of disposal and acquisition where asset disposed of under contract.
  38. Chapter II: Computation
  39. 28Chargeable gains.
  40. 29Losses.
  41. 29ASection 29A
  42. Computation of gains
  43. 30Introductory.
  44. 31Consideration chargeable to tax on income.
  45. 32Expenditure: general.
  46. 32AExpenditure: amounts to be included as consideration.
  47. 33Exclusion of expenditure by reference to tax on income.
  48. 33ASection 33A
  49. 34Restriction of losses by reference to capital allowances and renewals allowances.
  50. 35Part disposals.
  51. 36Assets derived from other assets.
  52. 37Wasting assets.
  53. 38Wasting assets: straightline restriction of allowable expenditure.
  54. 39Wasting assets qualifying for capital allowances.
  55. 40Consideration due after time of disposal.
  56. 41Contingent liabilities.
  57. 42Expenditure reimbursed out of public money.
  58. 43Supplemental.
  59. Part III: Persons and Trusts
  60. Married persons
  61. 44Husband and wife.
  62. 45Tax on married woman’s gains.
  63. Trustees, nominees and personal representatives
  64. 46Nominees and bare trustees.
  65. 47Expenses in administration of estates and trusts.
  66. 48Liability for tax.
  67. Death
  68. 49Death: general provisions.
  69. 50Death: application of law in Scotland.
  70. Settlements
  71. 51Meaning of “settled property”.
  72. 52Trustees of settlements.
  73. 53Gifts in settlement.
  74. 54Person becoming absolutely entitled to settled property.
  75. 55Termination of life interest etc.
  76. 56Death of life tenant: exclusion of chargeable gain.
  77. 56AEffect on sections 55 and 56 of relief under Finance Act 1980, section 79.
  78. 57Death of annuitant.
  79. 58Disposal of interests in settled property.
  80. Other cases
  81. 59Gifts: recovery from donee.
  82. 60Partnerships.
  83. 61Insolvents’ assets.
  84. 62Transactions between connected persons.
  85. 63Connected persons: interpretation.
  86. Part IV: Shares and Securities
  87. Chapter I: General
  88. 64Interpretation.
  89. Rules of identification
  90. 65Pooling.
  91. 66Disposal on or before day of acquisition.
  92. Gilt-edged securities
  93. 67Exemptions for gilt-edged securities and qualifying corporate bonds etc.
  94. 68Identification (general).
  95. 69Identification: disposal to husband or wife and third person.
  96. 70Re-acquisition after sale at a loss.
  97. Savings certificates, etc.
  98. 71Exemption for government non-marketable securities.
  99. Capital distribution in respect of shares, etc.
  100. 72Distribution which is not a new holding within Chapter II.
  101. 73Disposal of right to acquire shares.
  102. Close companies
  103. 74Disposal of shares: relief in respect of income tax consequent on shortfall in distributions.
  104. 75Shares in close company transferring assets at an undervalue.
  105. Share option schemes
  106. 76Consideration for acquisition of shares under share option schemes.
  107. Chapter II: Reorganisation of Share Capital, Conversion of Securities, Etc.
  108. Reorganisation or reduction of share capital
  109. 77Application of sections 78 to 81.
  110. 78Equation of original shares and new holding.
  111. 79Consideration given or received by holder.
  112. 80Part disposal of new holding.
  113. 81Composite new holdings.
  114. Conversion of securities
  115. 82Equation of converted securities and new holding.
  116. 83Premiums on conversion of securities.
  117. 84Compensation stock.
  118. Company reconstructions and amalgamations
  119. 85Exchange of securities for those in another company.
  120. 86Reconstruction or amalgamation involving issue of securities.
  121. 87Restriction on application of sections 85 and 86.
  122. 88Procedure for clearance in advance.
  123. Stock dividends
  124. 89Stock dividends: consideration for new holding.
  125. 90Capital gains on certain stock dividends.
  126. Quoted options
  127. 91Application of Chapter II to quoted options.
  128. Chapter III: Unit Trusts etc.
  129. Preliminary
  130. 92Interpretation.
  131. 93Application of Act to unit trusts.
  132. General
  133. 94. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  134. Unit trusts
  135. 95. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  136. 96Unit trusts for exempt unit holders.
  137. 97. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  138. 98Transfer of company’s assets to unit trust which later comes within section 96 or 97.
  139. Court investment funds etc.
  140. 99Funds in court.
  141. 100. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  142. Part V: Land
  143. Private residences
  144. 101Relief on disposal of private residence.
  145. 102Amount of relief.
  146. 103Amount of relief: further provisions.
  147. 104Private residence occupied under terms of settlement.
  148. 105Private residence occupied by dependent relative.
  149. Leases
  150. 106Leases of land and other assets.
  151. Part disposals
  152. 107Small part disposals.
  153. 108Part disposal to authority with compulsory powers.
  154. 109Part disposal: consideration exceeding allowable expenditure.
  155. Compulsory acquisition
  156. 110Compensation paid on compulsory acquisition.
  157. 111Time of disposal and acquisition.
  158. 111ARoll-over relief on compulsory acquisition.
  159. 111BSection 111B
  160. Agricultural land and woodlands
  161. 112Grants for giving up agricultural land.
  162. 113Woodlands.
  163. Development land tax etc.
  164. 114Interaction with development land tax and other taxation.
  165. Part VI: Property: Further Provisions
  166. Replacement of business assets
  167. 115Roll-over relief.
  168. 116Assets only partly replaced.
  169. 117New assets which are depreciating assets.
  170. 118Relevant classes of assets.
  171. 119Assets of Class 1.
  172. 120Trade carried on by family company: business assets dealt with by individual.
  173. 121Activities other than trades, and interpretation.
  174. Stock in trade
  175. 122Appropriations to and from stock.
  176. Transfer of business to a company
  177. 123Roll-over relief on transfer of business.
  178. 123ASection 123A
  179. Transfer of business on retirement
  180. 124Relief on transfer.
  181. 125Transfer by way of capital distribution from family company.
  182. Gifts of business assets
  183. 126Relief for gifts of business assets.
  184. 126ASection 126 relief: gifts to non-residents.
  185. 126BSection 126 relief: gifts to foreign-controlled companies.
  186. 126C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  187. Movable property
  188. 127Wasting assets.
  189. 128Chattel exemption.
  190. 129Leases of property other than land.
  191. 130Passenger vehicles.
  192. 131Decorations for valour or gallant conduct.
  193. Other property
  194. 132Commodities and other assets without earmark.
  195. 132ASection 132A
  196. 133Foreign currency for personal expenditure.
  197. 134Debts.
  198. 135Debts: foreign currency bank accounts.
  199. 136Relief in respect of loans to traders.
  200. 136ARelief for qualifying corporate bonds.
  201. 136BSection 136A: supplementary.
  202. 137Options and forfeited deposits.
  203. 138Options: application of rules as to wasting assets.
  204. 139Quoted options treated as part of new holdings.
  205. Part VII: Other Provisions
  206. Insurance
  207. 140Policies of insurance.
  208. 141Disallowance of insurance premiums as expenses.
  209. 142Underwriters.
  210. 142ADisposal of assets in premiums trust fund etc.
  211. 143Life assurance and deferred annuities.
  212. Superannuation funds, annuities and annual payments
  213. 144Superannuation funds, annuities and annual payments.
  214. Profit sharing and share option schemes
  215. 144AApproved profit sharing and share option schemes.
  216. Other exemptions and reliefs
  217. 145Charities.
  218. 146Gifts to charities etc.
  219. 146ASection 146A
  220. 147Works of art etc.
  221. 147AGifts on which inheritance tax is chargeable etc.
  222. 147BSection 147A relief: gifts to non-residents.
  223. 148Maintenance funds for historic buildings.
  224. 149Employee trusts.
  225. 149ABuilding societies and life policies.
  226. 149BMiscellaneous exemptions.
  227. 149CBusiness expansion schemes.
  228. 149DPersonal equity plans.
  229. Part VIII: Supplemental
  230. Valuation
  231. 150Valuation: general.
  232. 151Assets disposed of in a series of transactions.
  233. 152Unquoted shares and securities.
  234. 153Value determined for capital transfer tax.
  235. Other provisions
  236. 154Income tax decisions.
  237. 155Interpretation.
  238. Part IX: General
  239. 156Commencement.
  240. 157Savings, transitory provisions and consequential amendments.
  241. 158Repeals.
  242. 159Continuity and construction of references to old and new law.
  243. 160Short title.
  244. Schedule 1: Application of Exempt Amount in Particular Cases
  245. Preliminary
  246. 1Paragraph 1
  247. Husband and wife
  248. 2Paragraph 2
  249. 3Paragraph 3
  250. Personal representatives
  251. 4Paragraph 4
  252. Trustees
  253. 5Paragraph 5
  254. 6Paragraph 6
  255. Schedule 2: Gilt-Edged Securities
  256. Part I
  257. 1Paragraph 1
  258. 2Paragraph 2
  259. 3Paragraph 3
  260. Part II: Existing Gilt-Edged Securities
  261. Stocks and bonds charged on the National Loans Fund
  262. Securities issued by certain public corporations and guaranteed by the Treasury
  263. Schedule 3: Leases
  264. Leases of land as wasting assets: curved line restriction of allowable expenditure
  265. 1Paragraph 1
  266. Premiums for leases
  267. 2Paragraph 2
  268. 3Paragraph 3
  269. Sub-leases out of short leases
  270. 4Paragraph 4
  271. Exclusion of premiums taxed under Schedule A etc.
  272. 5Paragraph 5
  273. 6Paragraph 6
  274. 7Paragraph 7
  275. Duration of leases
  276. 8Paragraph 8
  277. Leases of property other than land
  278. 9Paragraph 9
  279. Interpretation
  280. 10Paragraph 10
  281. Schedule 4: Relief for Gifts of Business Assets
  282. Part I: Agricultural Property and Settled Property
  283. Agricultural property
  284. 1Paragraph 1
  285. Settled property
  286. 2Paragraph 2
  287. 3Paragraph 3
  288. Part II: Reductions in Held-Over Gain
  289. Application and interpretation
  290. 4Paragraph 4
  291. Reductions peculiar to disposals of assets
  292. 5Paragraph 5
  293. 6Paragraph 6
  294. Reduction peculiar to disposal of shares
  295. 7Paragraph 7
  296. Reduction where gain partly relieved by retirement relief
  297. 8Paragraph 8
  298. Schedule 5: Assets Held on 6th April 1965
  299. Part I: Quoted Securities
  300. Deemed acquisition at 6th April 1965 value
  301. 1Paragraph 1
  302. Restriction of gain or loss by reference to actual cost
  303. 2Paragraph 2
  304. Exclusion of pooling
  305. 3Paragraph 3
  306. Election for pooling
  307. 4Paragraph 4
  308. Election by principal company of group
  309. 5Paragraph 5
  310. Pooling at value on 6th April 1965: exchange of securities etc.
  311. 6Paragraph 6
  312. Underwriters
  313. 7Paragraph 7
  314. Interpretation of paragraphs 3 to 7
  315. 8Paragraph 8
  316. Part II: Land Reflecting Development Value
  317. Valuation at 6th April 1965
  318. 9Paragraph 9
  319. Allowance for betterment levy
  320. 10Paragraph 10
  321. Part III: Other Assets
  322. Apportionment by reference to straightline growth of gain or loss over period of ownership
  323. 11Paragraph 11
  324. Election for valuation at 6th April 1965
  325. 12Paragraph 12
  326. Unquoted shares, commodities, etc.
  327. 13Paragraph 13
  328. Reorganisation of share capital, conversion of securities, etc.
  329. 14Paragraph 14
  330. Part IV: Miscellaneous
  331. Capital allowances
  332. 15Paragraph 15
  333. Assets transferred to close companies
  334. 16Paragraph 16
  335. Husbands and wives
  336. 17Paragraph 17
  337. Compensation and insurance money
  338. 18Paragraph 18
  339. Schedule 6: Transitory
  340. Part I: Valuation
  341. Preliminary
  342. 1Paragraph 1
  343. Original rules
  344. 2Paragraph 2
  345. Value of quoted securities on 6th April 1965
  346. 3Paragraph 3
  347. References to Stock Exchange on or after 25th March 1973
  348. 4Paragraph 4
  349. Unquoted shares and securities: application of section 152 to acquisitions before commencement of this Act
  350. 5Paragraph 5
  351. 6Paragraph 6
  352. Unquoted shares or securities: acquisition on death
  353. 7Paragraph 7
  354. Unquoted shares or securities: prior part disposal
  355. 8Paragraph 8
  356. Value determined for estate duty
  357. 9Paragraph 9
  358. Part II: Assets Acquired Before Commencement
  359. Events before commencement
  360. 10Paragraph 10
  361. Part III: Other Transitory Provisions
  362. Value-shifting
  363. 11Paragraph 11
  364. Assets acquired on disposal chargeable under Case VII of Schedule D
  365. 12Paragraph 12
  366. Unrelieved Case VII losses
  367. 13Paragraph 13
  368. Dispositions before 27th March 1974 which attract capital transfer tax
  369. 14Paragraph 14
  370. Gifts subject to capital transfer tax on death
  371. 15Paragraph 15
  372. Life interest terminated on death on which capital transfer tax is chargeable
  373. 16Paragraph 16
  374. Devaluation of sterling: securities acquired with borrowed foreign currency
  375. 17Paragraph 17
  376. Devaluation of sterling: foreign insurance funds
  377. 18Paragraph 18
  378. Gilt-edged securities past redemption date
  379. 19Paragraph 19
  380. Reorganisation of share capital, conversion of securities, etc.
  381. 20Paragraph 20
  382. Land: allowance for betterment levy
  383. 21Paragraph 21
  384. Replacement of business assets
  385. 22Paragraph 22
  386. Transfer of business to a company
  387. 23Paragraph 23
  388. Works of art etc.
  389. 24Paragraph 24
  390. Disposal before acquisition
  391. 25Paragraph 25
  392. Estate duty
  393. 26Paragraph 26
  394. Income and corporation tax: premiums on leases
  395. 27Paragraph 27
  396. Validity of subordinate legislation
  397. 28Paragraph 28
  398. Saving for Part II of this Schedule
  399. 29Paragraph 29
  400. Schedule 7: Consequential Amendments
  401. Taxes Management Act 1970 (c. 9)
  402. 1Paragraph 1
  403. Income and Corporation Taxes Act 1970 (c. 10)
  404. 2Paragraph 2
  405. Finance Act 1974 (c. 30)
  406. 3Paragraph 3
  407. 4Paragraph 4
  408. 5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repealed
  409. Development Land Tax Act 1976 (c. 24)
  410. 6Paragraph 6
  411. Finance Act 1976 (c. 40)
  412. 7Paragraph 7
  413. Translation of references to Part III of Finance Act 1965
  414. 8Paragraph 8
  415. Part TABLE: Part I
  416. 9Paragraph 9
  417. 10Paragraph 10
  418. Part II: References to Part III of Finance Act 1965 Followed by Descriptive Words
  419. Translation of references to enactments repealed and re-enacted
  420. Schedule 8Repeals