Taxation of Chargeable Gains Act 1992

• (4) No account shall be taken under this Schedule of a distribution by the partnership in a period of account to which this Schedule applies to the extent that it represents a chargeable gain accruing in an earlier period to which this Schedule does not apply.

Election to remain outside Schedule

12

If the company—

• (a) became a member of the partnership before the beginning of the first period of account of the partnership to which this Schedule would otherwise apply, or

• (b) made its first contribution of capital to the partnership before 17th April 2002,

it may elect that the provisions of this Schedule shall not apply to it in relation to that partnership.

How and when election to be made

13

Any election under paragraph 11 or 12 must be made—

• (a) by notice to an officer of the Board,

• (b) not later than the end of the period of two years after the end of the company’s first accounting period beginning on or after 1st January 2002.

SCHEDULE 7B — Modification of Act in relation to overseas life insurance companies

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SCHEDULE 7C — Relief for transfers to Schedule 2 share plans

Introductory

1

• (1) A person (“the claimant”) who makes a disposal of shares (“the disposal”) to the trustees of the plan trust of a share incentive plan (“the plan”) is entitled to claim relief under paragraph 5 if—

• (a) the conditions in paragraph 2 are fulfilled, and

• (b) paragraph 3(1) or (2) applies.

• (2) Sub-paragraph (1) does not apply to a company that makes a disposal of shares.

• (3) In this paragraph the references to a disposal of shares include a disposal of an interest in shares.

Conditions relating to the disposal

2

• (1) The first condition is that, at the time of the disposal, the plan is a Schedule 2 SIP under Schedule 2 to ITEPA 2003.

• (2) The second condition is that the relevant shares meet the requirements in Part 4 of that Schedule (types of shares that may be awarded) in relation to the plan.

For this purpose that Part applies as if paragraph 27(1)(a) and (c) and (2) (listed shares and shares in a company under the control of a company whose shares are listed) were omitted.

• (3) The third condition is that, at any time in the entitlement period, the trustees hold, for the beneficiaries of the plan trust, shares in the relevant company that—

• (a) constitute not less than 10% of the ordinary share capital of the company, and

• (b) carry rights to not less than 10% of—

• (i) any profits available for distribution to shareholders of the company, and

• (ii) any assets of that company available for distribution to its shareholders in the event of a winding up.

• (4) For the purposes of sub-paragraph (3), shares that have been appropriated to, or acquired on behalf of, an individual under the plan shall continue to be treated as held by the trustees of the plan trust for the beneficiaries of that trust until such time as they cease to be subject to the plan (within the meaning given by paragraph 97 of Schedule 2 to ITEPA 2003).

• (5) The fourth condition is that, at all times in the proscribed period, there are no unauthorised arrangements under which the claimant or a person connected with him may be entitled to acquire (directly or indirectly) from the trustees of the plan trust any shares, or an interest in or right deriving from any shares.

• (6) For the purposes of this paragraph—

• “ordinary share capital” has the meaning given in section 989 of ITA 2007;

• “the relevant company” means the company of whose share capital the relevant shares form part; and

• “the relevant shares” means the shares that are, or an interest in which is, the subject of the disposal.

Reinvestment of disposal proceeds

3

• (1) This sub-paragraph applies if the claimant obtains consideration for the disposal and, at any time in the acquisition period, all of the amount or value of the consideration is applied by him in making an acquisition of assets or an interest in assets (“replacement assets”) which—

• (a) are, immediately after the time of the acquisition, chargeable assets in relation to the claimant, and

• (b) are not shares in, or debentures issued by, the relevant company or a company which is (at the time of the acquisition) in the same group as the relevant company;

but the preceding provisions of this sub-paragraph shall have effect without the words “, at any time in the acquisition period,” if the acquisition is made pursuant to an unconditional contract entered into in the acquisition period.

• (2) This sub-paragraph applies if—

• (a) sub-paragraph (1) would have applied but for the fact that part only of the amount or value mentioned in that sub-paragraph is applied as there mentioned, and

• (b) all the amount or value so mentioned except for a part which is less than the amount of the gain (whether all chargeable gain or not) accruing on the disposal is so applied.

• (3) In sub-paragraph (1)(b)—

• “the relevant company” has the meaning given in paragraph 2(6); and

• “group” shall be construed in accordance with section 170.

Provision supplementary to paragraphs 2 and 3

4

• (1) This paragraph applies for the purposes of paragraphs 2 and 3.

• (2) The entitlement period is the period beginning with the disposal and ending on the expiry of 12 months beginning with the date of the disposal.

• (3) The acquisition period is the period beginning with the disposal and ending on the expiry of six months beginning with—

• (a) the date of the disposal, or

• (b) if later, the date on which the third condition (set out in paragraph 2(3)) is first fulfilled.

• (4) The proscribed period is the period beginning with the disposal and ending on—

• (a) the date of the acquisition, or

• (b) if later, the date on which the third condition (set out in paragraph 2(3)) is first fulfilled.

• (5) All arrangements are unauthorised unless they only allow shares to be appropriated to or acquired on behalf of an individual under the plan.

The relief

5

• (1) Where the claimant is entitled to claim relief under this paragraph and paragraph 3(1) applies, he shall, on making a claim in the period of 2 years beginning with the acquisition, be treated for the purposes of this Act—

• (a) as if the consideration for the disposal were (if otherwise of a greater amount or value) of such amount as would secure that on the disposal neither a gain nor a loss accrues to him, and

• (b) as if the amount or value of the consideration for the acquisition were reduced by the excess of the amount or value of the actual consideration for the disposal over the amount of the consideration which the claimant is treated as receiving under paragraph (a).

• (2) Where the claimant is entitled to claim relief under this paragraph and paragraph 3(2) applies, he shall, on making a claim in the period of 2 years beginning with the acquisition, be treated for the purposes of this Act—

• (a) as if the amount of the gain accruing on the disposal were reduced to the amount of the part mentioned in paragraph 3(2)(b), and

• (b) as if the amount or value of the consideration for the acquisition were reduced by the amount by which the gain is reduced under paragraph (a) above.

• (3) Nothing in sub-paragraph (1) or (2) shall affect the treatment for the purposes of this Act of the other party to the disposal or of the other party to the acquisition.

• (4) The provisions of this Act fixing the amount of the consideration deemed to be given for a disposal or acquisition shall be applied before the preceding provisions of this paragraph are applied.

Dwelling-houses: special provision

6

• (1) Sub-paragraph (2) applies where—

• (a) a claim is made under paragraph 5,

• (b) immediately after the time of the acquisition mentioned in paragraph 3 and apart from this paragraph, any replacement asset was a chargeable asset in relation to the claimant,

• (c) the asset is a dwelling-house or part of a dwelling-house or land, and

• (d) there was a time in the period beginning with the acquisition and ending with the time when paragraph 5(1) or (2) falls to be applied such that, if the asset (or an interest in it) were disposed of at that time, it would be within section 222(1) and the individual there mentioned would be the claimant or the claimant’s spouse or civil partner.

• (2) In such a case the asset shall be treated as if, immediately after the time of the acquisition mentioned in paragraph 3, it was not a chargeable asset in relation to the claimant.

• (3) Sub-paragraph (4) applies where—

• (a) the provisions of paragraph 5(1) or (2) have been applied,

• (b) any replacement asset which, immediately after the time of the acquisition mentioned in paragraph 3 and apart from this paragraph, was a chargeable asset in relation to the claimant consists of a dwelling-house or part of a dwelling-house or land, and

• (c) there is a time after paragraph 5(1) or (2) has been applied such that, if the asset (or an interest in it) were disposed of at that time, it would be within section 222(1) and the individual there mentioned would be the claimant or the claimant’s spouse or civil partner.

• (4) In such a case—

• (a) the asset shall be treated as if, immediately after the time of the acquisition mentioned in paragraph 3, it was not a chargeable asset in relation to the claimant and adjustments shall be made accordingly, but

• (b) any gain treated as accruing in consequence of the application of paragraph (a) shall be treated as accruing at the time mentioned in sub-paragraph (3)(c) or, if there is more than one such time, at the earliest of them.

• (5) Sub-paragraph (6) applies where—

• (a) a claim is made under paragraph 5,

• (b) immediately after the time of the acquisition mentioned in paragraph 3 and apart from this paragraph, any replacement asset was a chargeable asset in relation to the claimant,

• (c) the asset was an option to acquire (or to acquire an interest in) a dwelling-house or part of a dwelling-house or land,

• (d) the option has been exercised, and

• (e) there was a time in the period beginning with the exercise of the option and ending with the time when paragraph 5(1) or (2) falls to be applied such that, if the asset acquired on exercise of the option were disposed of at that time, it would be within section 222(1) and the individual there mentioned would be the claimant or the claimant’s spouse or civil partner.

• (6) In such a case the option shall be treated as if, immediately after the time of the acquisition mentioned in paragraph 3, it was not a chargeable asset in relation to the claimant.

• (7) Sub-paragraph (8) applies where—

• (a) the provisions of paragraph 5(1) or (2) have been applied,

• (b) any replacement asset which, immediately after the time of the acquisition mentioned in paragraph 3 and apart from this paragraph, was a chargeable asset in relation to the claimant consisted of an option to acquire (or to acquire an interest in) a dwelling-house or part of a dwelling-house or land,

• (c) the option has been exercised, and

• (d) there is a time after paragraph 5(1) or (2) has been applied such that, if the asset acquired on exercise of the option were disposed of at that time, it would be within section 222(1) and the individual there mentioned would be the claimant or the claimant’s spouse or civil partner.

• (8) In such a case—

• (a) the option shall be treated as if, immediately after the time of the acquisition mentioned in paragraph 3, it was not a chargeable asset in relation to the claimant and adjustments shall be made accordingly, but

• (b) any gain treated as accruing in consequence of the application of paragraph (a) shall be treated as accruing at the time mentioned in sub-paragraph (7)(d) or, if there is more than one such time, at the earliest of them.

• (9) References in this paragraph to an individual include a person entitled to occupy under the terms of a settlement.

Shares: special provision

7

• (1) Sub-paragraph (2) applies where—

• (a) a claim is made under paragraph 5,

• (b) immediately after the time of the acquisition mentioned in paragraph 3 and apart from this paragraph, any replacement asset was a chargeable asset in relation to the claimant,

• (c) the asset consists of shares, and

• (d) relief is claimed under Chapter III of Part VII of the Taxes Act or Part 5 of ITA 2007 (enterprise investment scheme) at any time in the period beginning with the acquisition and ending when paragraph 5(1) or (2) falls to be applied.

• (2) In such a case the asset shall be treated as if, immediately after the time of the acquisition mentioned in paragraph 3, it was not a chargeable asset in relation to the claimant.

• (3) Sub-paragraph (4) applies where—

• (a) the provisions of paragraph 5(1) or (2) have been applied,

• (b) any replacement asset which, immediately after the time of the acquisition mentioned in paragraph 3 and apart from this paragraph, was a chargeable asset in relation to the claimant consists of shares, and

• (c) at any time after paragraph 5(1) or (2) has been applied relief is claimed in respect of the asset under Chapter III of Part VII of the Taxes Act or Part 5 of ITA 2007 (enterprise investment scheme).

• (4) In such a case the asset shall be treated as if, immediately after the time of the acquisition mentioned in paragraph 3, it was not a chargeable asset in relation to the claimant and adjustments shall be made accordingly.

Meaning of “chargeable asset”

8

For the purposes of this Schedule an asset is a chargeable asset in relation to the claimant at a particular time if, were the asset to be disposed of at that time, any gain accruing to him on the disposal would be a chargeable gain, and either—

• (a) the claimant would be chargeable to capital gains tax as a result of section 1A(1) (persons and gains chargeable to capital gains tax) in respect of the gain, or

• (b) he would be chargeable to capital gains tax as a result of section 1A(3)(a) (non-resident with United Kingdom branch or agency) in respect of the gain,

unless (were he to dispose of the asset at that time) the claimant would fall to be regarded for the purposes of any double taxation relief arrangements as not liable in the United Kingdom to tax on any gains accruing to him on the disposal.

SCHEDULE 7D — ... Share schemes and share incentives

Part 1 — Schedule 2 share incentive plans

Introductory

1

• (1) The provisions of this Part of this Schedule apply for capital gains tax purposes in relation to a Schedule 2 share incentive plan (“the plan”).

• (2) This Part of this Schedule forms part of the SIP code (see section 488 of ITEPA 2003 ( ... share incentive plans)).

• (3) Accordingly, expressions used in this Part of this Schedule and contained in the index at the end of Schedule 2 to that Act ( ... share incentive plans) have the meaning indicated by the index.

• (4) In particular, for the purposes of paragraphs 5 and 7 of this Schedule “market value” has the meaning given by paragraph 92 of Schedule 2 to that Act (determination of market value); and Part 8 of this Act has effect subject to this paragraph.

Gains accruing to trustees

2

• (1) Any gain accruing to the trustees is not a chargeable gain if the shares—

• (a) are shares in relation to which the requirements of Part 4 of Schedule 2 to ITEPA 2003 ( ... share incentive plans: types of shares that may be awarded) are met, and

• (b) are awarded to employees, or acquired on their behalf as dividend shares, in accordance with the plan within the relevant period.

• (2) If any of the shares in the company in question are readily convertible assets at the time the shares are acquired by the trustees, the relevant period is the period of two years beginning with the date on which the shares were acquired by the trustees.

This is subject to sub-paragraph (4).

• (3) If at the time of the acquisition of the shares by the trustees none of the shares in the company in question are readily convertible assets, the relevant period is—

• (a) the period of five years beginning with the date on which the shares were acquired by the trustees, or

• (b) if within that period any of the shares in that company become readily convertible assets, the period of two years beginning with the date on which they did so,

whichever ends first.

This is subject to sub-paragraph (4).

• (4) If the shares are acquired by the trustees by virtue of a payment in respect of which a deduction is allowed under section 989 of CTA 2009 (deduction for contribution to plan trust), the relevant period is the period of ten years beginning with the date of acquisition.

• (5) For the purposes of determining whether shares are awarded to a participant within the relevant period, shares acquired by the trustees at an earlier time are taken to be awarded to a participant before shares of the same class acquired by the trustees at a later time.

• (6) Sub-paragraph (5) is subject to paragraph 78(1) of Schedule 2 to ITEPA 2003 (acquisition by trustees of shares from employee share ownership trust).

• (7) For the purposes of this paragraph “readily convertible assets” has the meaning given by sections 701 and 702 of that Act (readily convertible assets).

This is subject to sub-paragraph (8).

• (8) In determining for the purposes of this paragraph whether shares are readily convertible assets any market for the shares that—

• (a) is created by virtue of the trustees acquiring shares for the purposes of the plan, and

• (b) exists solely for the purposes of the plan,

shall be disregarded.

• (9) In relation to shares acquired by the trustees before 11th May 2001 this paragraph has effect with the substitution—

• (a) in sub-paragraph (2), of “If the shares are readily convertible assets at the time they” for the words before “are acquired”, and

• (b) in sub-paragraph (3)—

• (i) of “If at the time of their acquisition by the trustees the shares are not readily convertible assets” for the words before “the relevant period”, and

• (ii) in paragraph (b), of “the shares in question” for “any of the shares in that company”.

Participant absolutely entitled as against trustees

3

• (1) Sub-paragraph (2) applies to any shares awarded to a participant under the plan.

• (2) The participant is treated for capital gains tax purposes as absolutely entitled to those shares as against the trustees.

• (3) Sub-paragraph (2) applies notwithstanding anything in the plan or the trust instrument.

Different classes of shares

4

• (1) For the purposes of Chapter 1 of Part 4 of this Act (shares, securities, options etc: general) a participant’s plan shares are treated, so long as they are subject to the plan, as of a different class from any shares (which would otherwise be treated as of the same class) that are not plan shares.

• (2) For the purposes of that Chapter, any shares to which sub-paragraph (3) applies shall be treated as of a different class from any shares to which sub-paragraph (4) applies, even if they would otherwise fall to be treated as of the same class.

• (3) This sub-paragraph applies to any shares transferred to the trustees of the plan trust by a qualifying transfer that have not been awarded to participants under the plan.

• (4) This sub-paragraph applies to any shares held by the trustees that were not transferred to them by a qualifying transfer.

• (5) In this paragraph “qualifying transfer” has the meaning given in paragraph 78(2) of Schedule 2 to ITEPA 2003 (acquisition by trustees of shares from employee share ownership trust).

• (6) For the purposes of Chapter 1 of Part 4 of this Act any shares which—

• (a) were acquired by the trustees by virtue of a payment in respect of which a deduction is allowed under paragraph 9 of Schedule 4AA to the Taxes Act (deduction for contribution to plan trust), and

• (b) have not been awarded under the plan,

shall be treated as of a different class from any shares held by the trustees that were not so acquired by them, even if they would otherwise fall to be treated as of the same class.

No chargeable gain on shares ceasing to be subject to the plan

5

• (1) Shares which cease to be subject to the plan are treated as having been disposed of and immediately reacquired by the participant at market value.

• (2) Any gain accruing on that disposal is not a chargeable gain.

Deemed disposal by trustees on disposal of beneficial interest

6

• (1) If at any time the participant’s beneficial interest in any of his shares is disposed of, the shares in question shall be treated for the purposes of the SIP code as having been disposed of at that time by the trustees for the like consideration as was obtained for the disposal of the beneficial interest.

• (2) For this purpose there is no disposal of the participant’s beneficial interest if and at the time when—

• (a) in England and Wales or Northern Ireland, that interest becomes vested in any person on the insolvency of the participant or otherwise by operation of law, or

• (b) in Scotland, that interest becomes vested in a judicial factor, in a trustee of the participant’s sequestrated estate or in a trustee for the benefit of the participant’s creditors.

• (3) If a disposal of shares falling within this paragraph is not at arm’s length, the proceeds of the disposal shall be taken for the purposes of the SIP code to be equal to the market value of the shares at the time of the disposal.

Treatment of forfeited shares

7

• (1) If any of the participant’s plan shares are forfeited, they are treated as having been disposed of by the participant and acquired by the trustees at market value at the date of forfeiture.

• (2) Any gain accruing on that disposal is not a chargeable gain.

Disposal of rights under rights issue

8

• (1) Any gain accruing on the disposal of rights under paragraph 77 of Schedule 2 to ITEPA 2003 (power of trustees to raise funds to subscribe for rights issue) is not a chargeable gain.

• (2) Sub-paragraph (1) does not apply to a disposal of rights unless similar rights are conferred in respect of all ordinary shares in the company.

Part 2 — Schedule 3 SAYE option schemes

Introductory

9

• (1) This Part of this Schedule forms part of the SAYE code (see section 516 of ITEPA 2003 ( ... SAYE option schemes)).

• (2) Accordingly, expressions used in this Part of this Schedule and contained in the index at the end of Schedule 3 to that Act ( ... SAYE option schemes) have the meaning indicated by the index.

Market value rule not to apply

10

• (1) This paragraph applies where—

• (a) a share option (“the option”) has been granted to an individual—

• (i) in accordance with the provisions of a Schedule 3 SAYE option scheme, and

• (ii) by reason of the individual’s office or employment as a director or employee of a company,

• (b) the individual exercises the option in accordance with the provisions of the SAYE option scheme at a time when the scheme is a Schedule 3 SAYE option scheme, and

• (c) condition A or condition B in section 519(2) or (3) of ITEPA 2003 (no charge in respect of exercise of option) is met.

• (2) The company mentioned in sub-paragraph (1)(a)(ii) may be—

• (a) the company whose shares are the subject of the option, or

• (b) some other company.

• (3) Sub-paragraph (3A) applies for the purposes of sub-paragraph (1)(b) if—

• (a) the SAYE option scheme is not to be a Schedule 3 SAYE option scheme by virtue of paragraph 40H or 40I of Schedule 3 to ITEPA 2003, and

• (b) the option was granted before, but exercised at or after, the time mentioned in paragraph 40H(2)(a)(i) or (ii) or 40I(7)(a)(i) or (ii) of that Schedule (as the case may be).

• (3A) The scheme is to be taken still to be a Schedule 3 SAYE option scheme when the option is exercised.

• (4) Section 17(1) (disposals and acquisitions treated as made at market value) shall not apply in calculating the consideration for—

• (a) the individual’s acquisition of shares by the exercise of the option, or

• (b) any corresponding disposal of those shares to the individual.

• (5) References in sub-paragraphs (1)(b) and (4) above to the individual include references to a person exercising the option in accordance with provision included in the scheme by virtue of paragraph 32 of Schedule 3 to ITEPA 2003 (exercise of options: death); and sub-paragraph (1)(c) above does not apply in relation to a person so exercising the option.

Part 3 — Schedule 4 CSOP schemes

Introductory

11

• (1) This Part of this Schedule forms part of the CSOP code (see section 521 of ITEPA 2003 ( ... CSOP schemes)).

• (2) Accordingly, expressions used in this Part of this Schedule and contained in the index at the end of Schedule 4 to that Act ( ... CSOP schemes) have the meaning indicated by the index.

• (3) This Part of this Schedule applies where—

• (a) a share option (“the option”) has been granted to an individual—

• (i) in accordance with the provisions of a Schedule 4 CSOP scheme, and

• (ii) by reason of the individual’s office or employment as a director or employee of a company, and

• (b) shares (“the relevant shares”) are acquired by the exercise of the option.

• (4) The company mentioned in sub-paragraph (3)(a)(ii) may be—

• (a) the company whose shares are the subject of the option, or

• (b) some other company.

Relief where income tax charged in respect of grant of option

12

• (1) This paragraph applies where an amount (the “employment income amount”) counted as employment income of the individual under section 526 of ITEPA 2003 (charge where option granted at a discount) in respect of the option.

• (2) For the purposes of section 38(1)(a) (acquisition and disposal costs etc.), that part of the employment income amount which is attributable to the relevant shares shall be treated as consideration given for the acquisition of the relevant shares.

• (3) This paragraph also applies where the individual was chargeable to income tax on an amount in respect of the option under—

• (a) subsection (6) of section 185 of ICTA (as it had effect before 1st January 1992),

• (b) subsection (6A) of that section (as it had effect in relation to options obtained on or after 1st January 1992 but before 29th April 1996), or

• (c) subsection (6) of that section (as it had effect in relation to options obtained on or after 29th April 1996);

and in such a case the “employment income amount” means the amount on which the individual was so chargeable.

• (4) This paragraph applies whether or not—

• (a) the exercise of the option is in accordance with the provisions of the CSOP scheme, or

• (b) the CSOP scheme is a Schedule 4 CSOP scheme at the time of the exercise.

Market value rule not to apply

13

• (1) This paragraph applies where—

• (a) the individual exercises the option in accordance with the provisions of the CSOP scheme at a time when the scheme is a Schedule 4 CSOP scheme, and

• (b) the condition in section 524(2) of ITEPA 2003 (no charge in respect of exercise of option) is met.

• (2) Section 17(1) (disposals and acquisitions treated as made at market value) shall not apply in calculating the consideration for—

• (a) the individual’s acquisition of the relevant shares by the exercise of the option, or

• (b) any corresponding disposal of the relevant shares to the individual.

• (3) Sub-paragraph (2) also applies where the option is exercised at a time when the scheme is a Schedule 4 CSOP scheme in accordance with provision included in the scheme by virtue of paragraph 25 of Schedule 4 to ITEPA 2003 (exercise of options: death); and references in that sub-paragraph to the individual are to be read accordingly.

Part 4 — Enterprise management incentives

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 8 — Leases

Leases of land as wasting assets: curved line restriction of allowable expenditure

1

• (1) A lease of land shall not be a wasting asset until the time when its duration does not exceed 50 years.

• (2) If at the beginning of the period of ownership of a lease of land it is subject to a sublease not at a rackrent and the value of the lease at the end of the duration of the sublease, estimated as at the beginning of the period of ownership, exceeds the expenditure allowable under section 38(1)(a) in computing the gain accruing on a disposal of the lease, the lease shall not be a wasting asset until the end of the duration of the sublease.

• (3) In the case of a wasting asset which is a lease of land the rate at which expenditure is assumed to be written off shall, instead of being a uniform rate as provided by section 46, be a rate fixed in accordance with the Table below.

• (4) Accordingly, for the purposes of the computation of the gain accruing on a disposal of a lease, and given that —

• (a) the percentage derived from the Table for the duration of the lease at the beginning of the period of ownership is P(1),

• (b) the percentage so derived for the duration of the lease at the time when any item of expenditure attributable to the lease under section 38(1)(b) is first reflected in the nature of the lease is P(2), and

• (c) the percentage so derived for the duration of the lease at the time of the disposal is P(3), then—

• (i) there shall be excluded from the expenditure attributable to the lease under section 38(1)(a) a fraction equal to —

$P (1) - P (3 ) ,P (1)$

and

• (ii) there shall be excluded from any item of expenditure attributable to the lease under section 38(1)(b) a fraction equal to—

$P (2) - P (3 ) .P (2)$

• (5) This paragraph applies notwithstanding that the period of ownership of the lease is a period exceeding 50 years and, accordingly, no expenditure shall be written off under this paragraph in respect of any period earlier than the time when the lease becomes a wasting asset.

• (6) Section 47 shall apply in relation to this paragraph as it applies in relation to section 46.

Premiums for leases

2

• (1) Subject to this Schedule where the payment of a premium is required under a lease of land, or otherwise under the terms subject to which a lease of land is granted, there is a part disposal of the freehold or other asset out of which the lease is granted.

• (2) In applying section 42 to such a part disposal, the property which remains undisposed of includes a right to any rent or other payments, other than a premium, payable under the lease, and that right shall be valued as at the time of the part disposal.

3

• (1) This paragraph applies in relation to a lease of land.

• (2) Where under the terms subject to which a lease is granted, a sum becomes payable by the tenant in lieu of the whole or part of the rent for any period, or as consideration for the surrender of the lease, the lease shall be deemed for the purposes of this Schedule to have required the payment of a premium to the landlord (in addition to any other premium) of the amount of that sum, being a premium which—

• (a) is due when the sum is payable by the tenant; and

• (b) where the sum is payable in lieu of rent, is in respect of the period in relation to which the sum is payable.

• (3) Where, as consideration for the variation or waiver of any of the terms of a lease, a sum becomes payable by the tenant otherwise than by way of rent, the lease shall be deemed for the purposes of this Schedule to have required the payment of a premium to the landlord (in addition to any other premium) of the amount of that sum, being a premium which—

• (a) is due when the sum is payable by the tenant; and

• (b) is in respect of the period from the time when the variation or waiver takes effect to the time when it ceases to have effect.

• (4) Where under sub-paragraph (2) or (3) above a premium is deemed to have been received by the landlord, that shall not be the occasion of any recomputation of the gain accruing on the receipt of any other premium, and the premium shall be regarded—

• (a) in the case of a premium deemed to have been received for the surrender of a lease, as consideration for a separate transaction which is effected when the premium is deemed to be due and consists of the disposal by the landlord of his interest in the lease; and

• (b) in any other case, as consideration for a separate transaction which is effected when the premium is deemed to be due and consists of a further part disposal of the freehold or other asset out of which the lease is granted.

• (5) If under sub-paragraph (2) or (3) above a premium is deemed to have been received by the landlord, otherwise than as consideration for the surrender of the lease, and the landlord is a tenant under a lease the duration of which does not exceed 50 years, this Schedule shall apply—

• (a) as if an amount equal to the amount of that premium deemed to have been received had been given by way of consideration for the grant of the part of the sublease covered by the period in respect of which the premium is deemed to have been paid; and

• (b) as if that consideration were expenditure incurred by the sublessee and attributable to that part of the sublease under section 38(1)(b).

• (7) Sub-paragraph (3) above shall apply in relation to a transaction not at arm's length, and in particular in relation to a transaction entered into gratuitously, as if such sum had become payable by the tenant otherwise than by way of rent as might have been required of him if the transaction had been at arm's length.

Subleases out of short leases

4

• (1) In the computation of the gain accruing on the part disposal of a lease which is a wasting asset by way of the grant of a sublease for a premium the expenditure attributable to the lease under paragraphs (a) and (b) of section 38(1) shall be apportioned in accordance with this paragraph, and section 42 shall not apply.

• (2) Out of each item of the expenditure attributable to the lease under paragraphs (a) and (b) of section 38(1) there shall be apportioned to what is disposed of —

• (a) if the amount of the premium is not less than what would be obtainable by way of premium for the said sublease if the rent payable under that sublease were the same as the rent payable under the lease, the fraction which, under paragraph 1(3) of this Schedule, is to be written off over the period which is the duration of the sublease, and

• (b) if the amount of the premium is less than the said amount so obtainable, the said fraction multiplied by a fraction equal to the amount of the said premium divided by the said amount so obtainable.

• (3) If the sublease is a sublease of part only of the land comprised in the lease this paragraph shall apply only in relation to a proportion of the expenditure attributable to the lease under paragraphs (a) and (b) of section 38(1) which is the same as the proportion which the value of the land comprised in the sublease bears to the value of that and the other land comprised in the lease; and the remainder of that expenditure shall be apportioned to what remains undisposed of.

Exclusion of premiums taxed as receipts of a property business etc.

5

• (1) Where by reference to any premium any amount is brought into account by virtue of any of sections 277 to 281 of ITTOIA 2005 or sections 217 to 221 of CTA 2009 as a receipt of a UK property business, that amount out of the premium shall be excluded from the consideration brought into account in the computation of the gain accruing on the disposal for which the premium is consideration except where the consideration is taken into account in the denominator of the fraction by reference to which an apportionment is made under section 42.

• (2) Where by reference to any premium in respect of a sublease granted out of a lease the duration of which (that is of the lease) does not, at the time of granting the lease, exceed 50 years, any amount is brought into account by virtue of any of sections 277 to 281 of ITTOIA 2005 or sections 217 to 221 of CTA 2009 as a receipt of a UK property business that amount shall be deducted from any gain accruing on the disposal for which the premium is consideration as computed in accordance with the provisions of this Act apart from this sub-paragraph, but not so as to convert the gain into a loss, or to increase any loss.

• (3) Subject to subsection (4) below, where any amount is brought into account by virtue of section 284 or 285 of ITTOIA 2005 or section 224 or 225 of CTA 2009 (sale of land with right to reconveyance or leaseback) as a receipt of a UK property business, a sum of that amount shall be excluded from the consideration brought into account in the computation of the gain accruing on the disposal of the estate or interest in respect of which income tax becomes so chargeable, except where the consideration is taken into account in the denominator of the fraction by reference to which an apportionment is made under section 42.

• (4) If what is disposed of is the remainder of a lease or a sublease out of a lease the duration of which does not exceed 50 years, sub-paragraph (3) shall not apply but the amount there referred to shall be deducted from any gain accruing on the disposal as computed in accordance with the provisions of this Act apart from this sub-paragraph and sub-paragraph (3), but not so as to convert the gain into a loss, or to increase any loss.

• (5) References in sub-paragraphs (1) and (2) above to a premium include references to—

• (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (b) a sum that becomes payable by the tenant under the terms subject to which a lease is granted in lieu of the whole or a part of the rent for any period,

• (c) a sum that becomes payable by the tenant under the terms subject to which a lease is granted as consideration for the surrender of the lease, and

• (d) a sum that becomes payable by the tenant (otherwise than by way of rent) as consideration for the variation or waiver of any of the terms of a lease.

• (6) Section 37 shall not be taken as authorising the exclusion of any amount from the consideration for a disposal of assets taken into account in the computation of the gain by reference to any amount from which a sum representing income tax is required to be deducted under Part 15 of ITA 2007.

6

• (1) If under section 292 of ITTOIA 2005 or section 232 of CTA 2009 (allowance where, by the grant of a sublease, a lessee has converted a capital amount into a right to income) a person is to be treated as incurring expenses in consequence of having granted a sublease, the amount of any loss accruing to the person on the disposal by way of the grant of the sublease shall be reduced by the total amount of rent which the person is thereby treated as paying, or the total amount of expenses which the person is thereby treated as incurring, over the term of the sublease (and without regard to whether relief is thereby effectively given over the term of the sublease), but not so as to convert the loss into a gain, or to increase any gain.

• (2) Nothing in section 37 of this Act shall be taken as applying in relation to any amount brought into account by virtue of section 282 of ITTOIA 2005 or section 222 of CTA 2009 (assignments for profit of lease granted at undervalue) as a receipt of a UK property business..

• (3) If any adjustment is made—

• (a) under section 301 or 302 of ITTOIA 2005, or

• (b) under section 238 or 239 of CTA 2009,

on a claim made under that section, any necessary adjustment shall be made to give effect to the consequences of the claim on the operation of this paragraph or paragraph 5 above.

7

If—

• (a) under section 277 of ITTOIA 2005 any amount is brought into account by virtue of section 278 of that Act as a receipt of a UK property business which is carried on by any person, or

• (b) under section 217 of CTA 2009 any amount is brought into account by virtue of section 218 of that Act as a receipt of a UK property business which is carried on by any company,

that person shall be treated for the purposes of the computation of any gain accruing to him as having incurred at the time the lease was granted expenditure of that amount (in addition to any other expenditure) attributable to the asset under section 38(1)(b).

7A

References in paragraphs 5 to 7 above to an amount brought into account as a receipt of a ... UK property business include references to an amount brought into account as a receipt of an overseas property business.

Duration of leases

8

• (1) In ascertaining for the purposes of this Act the duration of a lease of land the following provisions shall have effect.

• (2) Where the terms of the lease include provision for the determination of the lease by notice given by the landlord, the lease shall not be treated as granted for a term longer than one ending at the earliest date on which it could be determined by notice given by the landlord.

• (3) Where any of the terms of the lease (whether relating to forfeiture or to any other matter) or any other circumstances render it unlikely that the lease will continue beyond a date falling before the expiration of the term of the lease, the lease shall not be treated as having been granted for a term longer than one ending on that date.

• (4) Sub-paragraph (3) applies in particular where the lease provides for the rent to go up after a given date, or for the tenant⿿s obligations to become in any other respect more onerous after a given date, but includes provision for the determination of the lease on that date, by notice given by the tenant, and those provisions render it unlikely that the lease will continue beyond that date.

• (5) Where the terms of the lease include provision for the extension of the lease beyond a given date by notice given by the tenant this paragraph shall apply as if the term of the lease extended for as long as it could be extended by the tenant, but subject to any right of the landlord by notice to determine the lease.

• (6) It is hereby declared that the question what is the duration of a lease is to be decided, in relation to the grant or any disposal of the lease, by reference to the facts which were known or ascertainable at the time when the lease was acquired or created.

Leases of property other than land

9

• (1) Paragraphs 2, 3, 4 and 8 of this Schedule shall apply in relation to leases of property other than land as they apply to leases of land, but subject to any necessary modifications.

• (2) Where by reference to any capital sum within the meaning of section 681DM of ITA 2007 (leases of assets other than land) any person has been charged to income tax on any amount, that amount out of the capital sum shall be deducted from any gain accruing on the disposal for which that capital sum is consideration, as computed in accordance with the provisions of this Act apart from this sub-paragraph, but not so as to convert the gain into a loss, or increase any loss.

• (3) In the case of a lease of a wasting asset which is movable property the lease shall be assumed to terminate not later than the end of the life of the wasting asset.

Interpretation

10

• (1) In this Act, unless the context otherwise requires “lease” —

• (a) in relation to land, includes an underlease, sublease or any tenancy or licence, and any agreement for a lease, underlease, sublease or tenancy or licence and, in the case of land outside the United Kingdom, any interest corresponding to a lease as so defined,

• (b) in relation to any description of property other than land, means any kind of agreement or arrangement under which payments are made for the use of, or otherwise in respect of, property,

and “lessor”, “lessee” and “rent” shall be construed accordingly.

• (2) In this Schedule “premium” includes any like sum, whether payable to the intermediate or a superior landlord, and for the purposes of this Schedule any sum (other than rent) paid on or in connection with the granting of a tenancy shall be presumed to have been paid by way of premium except in so far as other sufficient consideration for the payment can be shown to have been given.

• (3) In the application of this Schedule to Scotland “premium” includes in particular a grassum payable to any landlord or intermediate landlord on the creation of a sublease.

SCHEDULE 8A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1

• (1) This Schedule applies where—

• (a) an individual makes a disposal of a debt to which section 252(1) applies (“the relevant disposal”),

• (b) the debt (“the section 252 debt”) is not situated in the United Kingdom, and

• (c) money or money's worth which is remitted foreign income (“the section 37 amount”) is excluded under section 37 from the consideration for the relevant disposal.

• (2) For this purpose “remitted foreign income” means income of the individual which is chargeable to income tax on the alternative basis of charge set out in Chapter A1 of Part 14 of ITA 2007 (remittance basis).

• (3) In determining whether the condition in sub-paragraph (1)(c) is met, the following provisions of this Schedule are to be ignored.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCHEDULE 8B — Hold-over relief for gains re-invested in social enterprises

When does the Schedule apply?

1

• (1) This Schedule applies if—

• (a) a chargeable gain accrues to an individual (“the investor”),

• (b) the investor acquires one or more assets (“the social holding”),

• (c) the investor is eligible for SI relief under Part 5B of ITA 2007 in respect of the consideration given for the social holding, and

• (d) conditions A, B, C, D and E are met.

• (2) Condition A is that the gain is one that accrues—

• (a) on the disposal by the investor of an asset,

• (b) in accordance with section 169N (but see sub-paragraph (7)), or

• (c) as a result of the operation of paragraph 5 in connection with a chargeable event within paragraph 6(1)(c) or (d).

• (3) Condition B is that the gain is one that accrues—

• (a) on or after 6 April 2014, and

• (b) before 6 April 2023 (but see sub-paragraph (8)).

• (4) Condition C is that the investor is resident in the United Kingdom—

• (a) when the gain accrues, and

• (b) when the social holding is acquired.

• (5) Condition D is that the social holding is acquired by the investor on the investor's own behalf.

• (6) Condition E is that the social holding is acquired—

• (a) in the 3 years beginning with the day when the gain accrues, or

• (b) in the year that ends at the beginning of that day.

• (7) The reference in sub-paragraph (2)(b) to a gain accruing in accordance with section 169N does not include such a gain so far as it is chargeable to capital gains tax at the rate in section 169N(3) (rate where business asset disposal relief is available).

• (8) The Treasury may by order substitute a later date for the date for the time being specified in sub-paragraph (3)(b).

2

• (1) This Schedule also applies if—

• (a) a chargeable gain accrues to an individual (“the investor”),

• (b) the gain accrues as a result of the operation of paragraph 5 in connection with a chargeable event within paragraph 6(1)(a), (b) or (c),

• (c) the chargeable event is either—

• (i) a disposal to a social enterprise of shares in or debentures of the social enterprise, or

• (ii) the cancellation, extinguishment, redemption or repayment by a social enterprise of shares in or debentures of the social enterprise,

• (d) as part of the chargeable event or in connection with it, and in place of the shares or debentures, the investor acquires one or more assets (“the social holding”) from the social enterprise,

• (e) other than the investor's ceasing to hold the shares or debentures, no detriment is suffered in return for the acquisition of the social holding,

• (f) the asset acquired, or each of the assets acquired, is a share in or debenture of the social enterprise,

• (g) but for section 257LA of ITA 2007 (consideration for acquisition must be wholly in cash and fully paid) the investor would be eligible for SI relief under Part 5B of ITA 2007 in respect of the consideration given for the social holding, and

• (h) conditions F, G, H and J are met.

• (2) Condition F is that the gain is one that accrues—

• (a) on or after 6 April 2014, and

• (b) before 6 April 2023 (but see sub-paragraph (6)).

• (3) Condition G is that the investor is resident in the United Kingdom—

• (a) when the gain accrues, and

• (b) when the social holding is acquired.

• (4) Condition H is that the social holding is acquired by the investor on the investor's own behalf.

• (5) Condition J is that the social holding is acquired—

• (a) in the 3 years beginning with the day when the gain accrues, or

• (b) in the year that ends at the beginning of that day.

• (6) The Treasury may by order substitute a later date for the date for the time being specified in sub-paragraph (2)(b).

• (7) In this paragraph “debenture” includes any instrument creating or acknowledging indebtedness.

• (8) A reference in this paragraph to a social enterprise is a reference to a body that is a social enterprise for the purposes of Part 5B of ITA 2007 (see section 257J of that Act).

Interpretation of Schedule

3

• (1) In the following provisions of this Schedule—

• “the amount invested” means, in a case where this Schedule applies because of paragraph 1, the consideration mentioned in paragraph 1(1)(c),

• “the investor” means the individual mentioned in paragraph 1(1)(a) or, as the case may be, paragraph 2(1)(a),

• “the original gain” means the chargeable gain mentioned in paragraph 1(1)(a) or, as the case may be, paragraph 2(1)(a), and

• “the social holding” means the asset or assets mentioned in paragraph 1(1)(b) or, as the case may be, paragraph 2(1)(d).

• (2) In this Schedule, a “disposal within marriage or civil partnership” is a disposal to which section 58 (certain disposals between spouses or civil partners) applies.

Claim to hold gain over while invested in a social enterprise

4

• (1) The investor may make a claim for the original gain to be reduced—

• (a) in a case within paragraph 1, by the amount invested, or by a part of that amount specified in the claim, or

• (b) in a case within paragraph 2, to the extent specified in the claim,

but, in either case, subject as follows.

• (2) The reduction may not be more than the original gain or, if the original gain has already been reduced under one or more of the listed provisions, the reduction may not be more than the reduced gain.

• (3) In a case within paragraph 1, the claim may not relate to any part of the amount invested that under any of the listed provisions has already been set against a chargeable gain.

• (4) The “listed provisions” are—

• (a) sub-paragraph (1),

• (b) Schedule 5B, and

• (c) paragraph 1(5) of Schedule 5BB.

• (5) The total of all reductions claimed by the investor under sub-paragraph (1) in any tax year must not be more than £1,000,000.

• (6) If there is relief by way of a reduction under sub-paragraph (1) then, for the purposes of this Schedule, that relief—

• (a) is attributable to the asset or assets that form the social holding, but

• (b) ceases to be attributable to any particular asset, or to any particular part of a particular asset, when—

• (i) a chargeable event occurs in relation to that asset or part, or

• (ii) the person holding the asset or part dies.

Held-over gain treated as accruing on disposal etc of the qualifying investment

5

• (1) This paragraph applies if there has been a reduction under paragraph 4(1).

• (2) A chargeable gain equal to the amount of the reduction is treated as accruing when a chargeable event occurs in relation to the social holding without any chargeable event having previously occurred in relation to any of the holding.

• (3) When a chargeable event occurs in relation to part only of the social holding without any chargeable event having previously occurred in relation to any of that part, a chargeable gain calculated in accordance with sub-paragraph (4) is treated as accruing.

• (4) The calculation is—

• Step 1 Subtract from the amount of the reduction any chargeable gains previously treated as accruing as a result of the operation of sub-paragraph (3).

• Step 2 Attribute a proportionate part of the amount calculated at Step 1 to each part of the social holding held, immediately before the occurrence of the chargeable event in question, by the investor or a person who has acquired any part of the holding from the investor on a disposal within marriage or civil partnership.

• Step 3 The amount attributed at Step 2 to the part of the social holding in relation to which that chargeable event occurs is the chargeable gain treated as accruing as a result of the operation of subparagraph (3) on the occurrence of that event.

Chargeable events

6

• (1) A chargeable event occurs in relation to an asset that forms the whole or any part of the social holding if (after the acquisition of the holding)—

• (a) the investor disposes of the asset otherwise than by way of a disposal within marriage or civil partnership,

• (b) the asset is disposed of, otherwise than by way of a disposal to the investor, by a person who acquired the asset on a disposal made within marriage or civil partnership,

• (c) the asset is cancelled, extinguished, redeemed or repaid, or

• (d) any of the conditions in Chapters 3 and 4 of Part 5B of ITA 2007 for the investor's eligibility for SI relief under that Part in respect of the amount invested fails to be met.

In this sub-paragraph “asset” includes part of an asset.

• (2) In the event of the death of—

• (a) the investor, or

• (b) a person who, on a disposal within marriage or civil partnership, has acquired the whole or any part of the social holding,

nothing which occurs at or after the time of death is a chargeable event in relation to any part of the holding held by the deceased person immediately before the time of death.

• (3) If a person makes a disposal of assets of a particular class while retaining other assets of that class—

• (a) assets of that class acquired by the person on an earlier day are treated for the purposes of this Schedule as disposed of before assets of that class acquired by the person on a later day, and

• (b) assets of that class acquired by the person on the same day are treated for the purposes of this Schedule as disposed of in the following order—

• (i) first, any to which neither relief under this Schedule, nor SI relief under Part 5B of ITA 2007, is attributable,

• (ii) next, any to which relief under this Schedule, but not SI relief under that Part, is attributable,

• (iii) next, any to which SI relief under that Part, but not relief under this Schedule, is attributable, and

• (iv) finally, any to which both SI relief under that Part, and relief under this Schedule, are attributable.

• (4) For the purposes of sub-paragraph (3), assets—

• (a) to which relief under this Schedule is attributable, and

• (b) which have not been held continuously by the investor since the social holding was acquired,

are treated as having been acquired when the social holding was acquired if SI relief under Part 5B of ITA 2007 is not also attributable to them.

• (5) For the purposes of sub-paragraph (3), assets—

• (a) to which SI relief under Part 5B of ITA 2007 is attributable, and

• (b) which were transferred to an individual as mentioned in section 257T of ITA 2007 (transfers between spouses or civil partners),

are treated as having been acquired when the social holding was acquired.

• (6) Chapter 1 of Part 4 of this Act has effect subject to sub-paragraphs (3) to (5).

• (7) Sections 104, 105 and 106A do not apply to assets to which relief under this Schedule is attributable if SI relief under Part 5B of ITA 2007 is not also attributable to them.

• (8) Where, at the time of a chargeable event, an asset that formed the whole or any part of the social holding is treated for the purposes of this Act as represented by assets which consist of or include assets other than that asset—

• (a) so much of the original gain as is attributable to the asset is treated, in determining for the purposes of this paragraph the amount of the original gain to be treated as attributable to each of those assets, as apportioned in such manner as may be just and reasonable between those assets, and

• (b) as between different assets treated as representing the same asset, sub-paragraphs (3) to (5) apply with the necessary modifications in relation to those assets as they would apply in relation to the asset.

• (9) In order to determine, for the purposes of sub-paragraph (8), the amount of the original gain attributable to any asset, a proportionate part of the amount of the original gain is to be attributed to each asset that forms the whole or any part of so much of the social holding as is held, immediately before the occurrence of the chargeable event in question, by the investor or a person who has acquired any part of the social holding from the investor on a disposal within marriage or civil partnership.

• (10) In subsections (8) and (9) references to the original gain are to so much of the original gain as remains after deduction from it of the amount of any chargeable gain treated as accruing as a result of the previous operation of paragraph 5.

Person to whom held-over gain is treated as accruing

7

• (1) This paragraph applies where a chargeable gain is treated as accruing as a result of the operation of paragraph 5.

• (2) If the chargeable event is a disposal, that chargeable gain is treated as accruing to the person who makes the disposal.

• (3) If the chargeable event occurs—

• (a) when an asset, or part of an asset, is cancelled, extinguished, redeemed or repaid, or

• (b) when a condition, for eligibility for relief in respect of the consideration given for the acquisition of an asset, fails to be met,

that chargeable gain is treated as accruing to the person who holds the asset, or part, when the chargeable event occurs.

Claims: procedure

8

• (1) Sections 257P(1), 257PA(1) and 257PB to 257PD of ITA 2007—

• (a) apply in relation to a claim under this Schedule in respect of the social holding as they apply in relation to a claim under Part 5B to ITA 2007 in respect of an investment, and

• (b) as they so apply, have effect as if any reference to the requirements for relief under that Part were a reference to the conditions for the application of this Schedule.

• (2) In section 257PE(2) of ITA 2007 (power to make consequential amendments etc when amending provision about claims for SI relief) “enactment” includes (in particular) sub-paragraph (1).

SCHEDULE 9 — Gilt-edged securities

Part I — General

1

For the purposes of this Act “gilt-edged securities” means the securities specified in Part II of this Schedule, and such stocks and bonds issued under section 12 of the National Loans Act 1968, denominated in sterling and issued after 15th April 1969, as may be specified by order made by the Treasury.

1A

• (1) Any security which is a strip of a security which is a gilt-edged security for the purposes of this Act is also itself a gilt-edged security for those purposes.

• (2) In this paragraph “strip” has the same meaning as in section 47 of the Finance Act 1942.

2

The Treasury shall cause particulars of any order made under paragraph 1 above to be published in the London and Edinburgh Gazettes as soon as may be after the order is made.

3

Section 14(b) of the Interpretation Act 1978 (implied power to amend orders made by statutory instrument) shall not apply to the power of making orders under paragraph 1 above.

Part II — Existing gilt-edged securities

12¾%	Treasury Loan 1992
8%	Treasury Loan 1992
10%	Treasury Stock 1992
3%	Treasury Stock 1992
12¼%	Exchequer Stock 1992
13½%	Exchequer Stock 1992
10½%	Treasury Convertible Stock 1992
2%	Index-linked Treasury Stock 1992
12½%	Treasury Loan 1993
6%	Funding Loan 1993
13¾%	Treasury Loan 1993
10%	Treasury Loan 1993
8¼%	Treasury Stock 1993
14½%	Treasury Loan 1994
12½%	Exchequer Stock 1994
9%	Treasury Loan 1994
10%	Treasury Loan 1994
13½%	Exchequer Stock 1994
8½%	Treasury Stock 1994
8½%	Treasury Stock 1994 "A"
2%	Index-linked Treasury Stock 1994
3%	Exchequer Gas Stock 1990-95
12%	Treasury Stock 1995
10¼%	Exchequer Stock 1995
12¾%	Treasury Loan 1995
9%	Treasury Loan 1992-96
15¼%	Treasury Loan 1996
13¼%	Exchequer Loan 1996
14%	Treasury Stock 1996
2%	Index-linked Treasury Stock 1996
10%	Conversion Stock 1996
13¼%	Treasury Loan 1997
10½%	Exchequer Stock 1997
8¾%	Treasury Loan 1997
8¾%	Treasury Loan 1997 "B"
8¾%	Treasury Loan 1997 "C"
15%	Exchequer Stock 1997
6¾%	Treasury Loan 1995-98
15½%	Treasury Loan 1998
12%	Exchequer Stock 1998
12%	Exchequer Stock 1998 "A"
9¾%	Exchequer Stock 1998
9¾%	Exchequer Stock 1998 "A"
9½%	Treasury Loan 1999
10½%	Treasury Stock 1999
12½%	Exchequer Stock 1999
12½%	Exchequer Stock 1999 "A"
12½%	Exchequer Stock 1999 "B"
2½%	Index-linked Treasury Convertible Stock 1999
10½%	Conversion Stock 1999
9%	Conversion Stock 2000
9%	Conversion Stock 2000 "A"
13%	Treasury Stock 2000
8½%	Treasury Loan 2000
14%	Treasury Stock 1998-2001
2½%	Index-linked Treasury Stock 2001
9¾%	Conversion Stock 2001
10%	Treasury Stock 2001
9½%	Conversion Loan 2001
12%	Exchequer Stock 1999-2002
12%	Exchequer Stock 1999-2002 "A"
9½%	Conversion Stock 2002
10%	Conversion Stock 2002
9%	Exchequer Stock 2002
9¾%	Treasury Stock 2002
13¾%	Treasury Stock 2000-2003
13¾%	Treasury Stock 2000-2003 "A"
2½%	Indexed-linked Treasury Stock 2003
9¾%	Conversion Loan 2003
10%	Treasury Stock 2003
3½%	Funding Stock 1999-2004
11½%	Treasury Stock 2001-2004
9½%	Conversion Stock 2004
10%	Treasury Stock 2004
12½%	Treasury Stock 2003-2005
12½%	Treasury Stock 2003-2005 "A"
10½%	Exchequer Stock 2005
9½%	Conversion Stock 2005
9½%	Conversion Stock 2005 "A"
8%	Treasury Loan 2002-2006
8%	Treasury Loan 2002-2006 "A"
2%	Indexed-linked Treasury Stock 2006
9¾%	Conversion Stock 2006
11¾%	Treasury Stock 2003-2007
11¾%	Treasury Stock 2003-2007 "A"
8½%	Treasury Loan 2007
13½%	Treasury Stock 2004-2008
9%	Treasury Loan 2008
9%	Treasury Loan 2008 "A"
2½%	Indexed-linked Treasury Stock 2009
8%	Treasury Stock 2009
2½%	Indexed-linked Treasury Stock 2011
9%	Conversion Loan 2011
5½%	Treasury Stock 2008-2012
2½%	Indexed-linked Treasury Stock 2013
7¾%	Treasury Loan 2012-2015
2½%	Treasury Stock 1986-2016
2½%	Indexed-linked Treasury Stock 2016
2½%	Indexed-linked Treasury Stock 2016 "A"
12%	Exchequer Stock 2013-2017
2½%	Indexed-linked Treasury Stock 2020
2½%	Indexed-linked Treasury Stock 2024
2½%	Annuities 1905 or after
2¾%	Annuities 1905 or after
2½%	Consolidated Stock 1923 or after
4%	Consolidated Loan 1957 or after
3½%	Conversion Loan 1961 or after
2½%	Treasury Stock 1975 or after
3%	Treasury Stock 1966 or after
3½%	War Loan 1952 or after
10%	Conversion Stock 1996 "A"
10%	Conversion Stock 1996 "B"
12%	Exchequer Stock 1998 "B"
9%	Conversion Stock 2000 "B"
13%	Treasury Stock 2000 "A"
10%	Treasury Stock 2001 "A"
10%	Treasury Stock 2001 "B"
9¾%	Treasury Stock 2002 "A"
9¾%	Treasury Stock 2002 "B"
10%	Treasury Stock 2003 "A"
9½%	Conversion Stock 2004 "A"
9%	Treasury Loan 2008 "B"
9%	Treasury Loan 2008 "C"
9%	Conversion Loan 2011 "A"
Securities issued by certain public corporations and guaranteed by the Treasury	Securities issued by certain public corporations and guaranteed by the Treasury
3%	North of Scotland Electricity Stock 1989-92

SCHEDULE 10 — Consequential amendments

Post Office Act 1969 c. 48

1

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Taxes Management Act 1970 c. 9

2

• (1) The Taxes Management Act 1970 shall have effect subject to the following amendments.

• (2) In sections 11(1)(b), 27(1), 47(1), 57(1)(a), 78(3)(b), 111 and 119(4) for (2)In sections 11(1)(b), 27(1), 47(1), 57(1)(a), ..., 111 and 119(4) for “Capital Gains Tax Act 1979” there shall be substituted “ 1992 Act ”.

• (3) In section 12(2)—

• (a) for “Capital Gains Tax Act 1979” there shall be substituted “ 1992 Act ”;

• (b) for “19(4)” there shall be substituted “ 51(1) ”;

• (c) for “71” there shall be substituted “ 121 ”;

• (d) for “130, 131 or 133”there shall be substituted “ 263, 268 or 269 ”;

• (e) for “128(6)” there shall be substituted “ 262(6) ”.

• (4) In section 25(9) for “sections 64, 93 and 155(1) of the Capital Gains Tax Act 1979” there shall be substituted “ sections 99 and 288(1) of the 1992 Act. ”

• (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (6) In section 30(2)(a) and (3)(a) for “47 of the Finance (No.2) Act 1975” there shall be substituted “ 283 of the 1992 Act ”.

• (7) In section 31(3)(c) for “38 of the Finance Act 1973” there shall be substituted “ 276 of the 1992 Act ”.

• (8) In section 86(4) for “7 of the Capital Gains Tax Act 1979” there shall be substituted “ 7 of the 1992 Act ”.

• (9) In section 87A(3) for the words from “section 267(3C)” to “1979” there shall be substituted “ 137(4), 139(7) or 179(11) of the 1992 Act or section 96(8) of the Finance Act 1990 ”. This sub-paragraph shall come into force on the day appointed under section 95 of the Finance (No.2) Act 1987 for the purposes of section 85 of that Act.

• (10) In section 98 —

• (a) in column 1 of the Table —

• (i) for “149D of the Capital Gains Tax Act 1979” there shall be substituted “ 151 of the 1992 Act ”;

• (ii) for “6(9) of Schedule 1 to the Capital Gains Tax Act 1979” there shall be substituted “ 2(9) of Schedule 1 to the 1992 Act ”;

• (iii) for “84 of the Finance Act 1981”there shall be substituted “ 98 of the 1992 Act ”;

• (iv) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (v) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (vi) for “12 of Schedule 16 to the Finance Act 1991” there shall be substituted “ 10 of Schedule 5 to the 1992 Act ”; and

• (b) in column 2 of the Table —

• (i) for “149D of the Capital Gains Tax Act 1979” there shall be substituted “ 151 of the 1992 Act ”; and

• (ii) for “13 to 16 of Schedule 16 to the Finance Act 1991”there shall be substituted “ 11 to 14 of Schedule 5 to the 1992 Act ”.

• (11) In section 118(1)—

• (a) in the definition of “chargeable gain” for “Capital Gains Tax Act 1979” there shall be substituted “ 1992 Act ”; and

• (b) in paragraph (b) of the definition of “the Taxes Acts” for “the Capital Gains Tax Act 1979” there shall be substituted “ the Taxation of Chargeable Gains Act 1992 ”and

• (c) immediately after that definition there shall be inserted— “ the 1992 Act ”means the Taxation of Chargeable Gains Act 1992.

Finance Act 1973 c. 51

3

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

British Aerospace Act 1980 c. 26

4

In section 12(2) of the British Aerospace Act 1980 for “272(5) of the Income and Corporation Taxes Act 1970” there shall be substituted “ 170(12) of the Taxation of Chargeable Gains Act 1992 ”.

British Telecommunications Act 1981 c. 38

5

In section 82(1) for “Capital Gains Tax Act 1979” and “Schedule 5” there shall be substituted respectively “ Taxation of Chargeable Gains Act 1992 ” and “ Schedule 2 ”.

Value Added Tax Act 1983 c. 55

6

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Telecommunications Act 1984 c. 12

7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Inheritance Tax Act 1984 c. 51

8

• (1) The Inheritance Tax Act shall have effect subject to the following amendments.

• (2) In section 31(4G)(b) for “147 of the Capital Gains Tax Act 1979” there shall be substituted “ 258 of the 1992 Act ”.