§ 1. In this schedule the word "year" means a period of twelve calendar months and also includes an incomplete year immediately before disposal.
§ 2. The gain accruing from the acquisition and disposal of a chargeable asset, being gain taxable under section nine of this Act, is divided by four times the number of years between acquisition and disposal; and the quotient so obtained is hereinafter called a "taxable unit".
§ 3. A number (hereinafter called "the taxing number") is computed by reference to the period between the acquisition and the disposal of the chargeable asset, that is to say, by adding—
- (a) in the case of a chargeable asset consisting of land,
- (i) the number four for each of the first three years after acquisition,
- (ii) the number three for each of the fourth and fifth years after acquisition,
- (iii) the number two for each year after acquisition from and including the sixth year to and including the tenth year,
- (iv) the number one for each year after the said tenth year, or
- (b) in the case of any other chargeable asset,
- (i) the number four for the first year after acquisition,
- (ii) the number three for the second year after acquisition,
- (iii) the number two for each of the third, fourth and fifth years after acquisition,
- (iv) the number one for each year after the said fifth year.
§ 4. The tax chargeable in respect of the said gain shall be the tax on the taxing number of taxable units and the relief (in the Act called "lapse of time relief") shall be the difference between the tax so chargeable and the tax which would have been chargeable on the gain if this schedule had not been enacted.