PART II

HC Deb 27 October 1966 vol 734 cc1477-9

80	TAXABLE DISPOSAL PRECEDING CHARGEABLE ACT OR EVENT
Introductory
	9. For the purposes of this Schedule an act or event (whether actual or one which by virtue of any provision of Part III or Part IV of the Finance Act 1965 is deemed to have occurred) shall be taken to have constituted a taxable disposal if—
85	(a) for the purposes of Part III of the Finance Act 1965 it constituted a disposal of an asset on which chargeable gains accrued to a person, or would so have accrued if the assumed tax condition had been fulfilled in relation to that disposal, or
90	(b) for the purposes of that Part of that Act as applied to corporation tax by Part IV of that Act it constituted a disposal of an asset on which chargeable gains accrued to a company, or would so have accrued if the assumed tax condition had been fulfilled in relation to that disposal, or
95	(c) for the purposes of section 82 of that Act it constituted a disposal of an asset on which chargeable gains accrued to a company in the circumstances specified in subsection (1) of that section, or would so have accrued if the assumed tax condition had been fulfilled in relation to that disposal.
100	10.—(1) For the purposes of this Part of this Schedule a previous chargeable act or event shall be taken to have been a chargeable act or event affecting the chargeable interest if that interest was the chargeable interest for the purpose of assessing levy in respect of that chargeable act or event.
	(2) For the purposes of this Part of this Schedule a previous chargeable act or event shall be taken to have been notified if it was or is notified in accordance with the provisions as to notification contained in Part III of this Act.
Disposal by way of gift
105	11. The appropriate deduction shall (subject to paragraph 15 of this Schedule) be made for the purpose of assessing levy in respect of a chargeable act or event where—
110	(a) before the first appointed day, but not more than six years before the relevant date, there was a disposal of the chargeable interest to a person by way of gift (including any such gift in settlement as is mentioned in section 25(2) of the Finance Act 1965) and that disposal constituted a taxable disposal;
	(b) after that disposal and before the first appointed day there was not any disposition for valuable consideration under which the chargeable owner or a predecessor in title of his became entitled to the chargeable interest; and
115	(c) there has not before the relevant date been any previous notified chargeable act or event affecting the chargeable interest.
Disposal deemed to have occurred on death
	12. The appropriate deduction shall (subject to paragraph 15 of this Schedule) be made for the purpose of assessing levy in respect of a chargeable act or event where—
120	(a) by virtue of section 24(1) of the Finance Act 1965 a disposal of the chargeable interest is deemed to have occurred on a person's death before the first appointed day but not more than six years before the relevant date and that disposal constituted a taxable disposal;

125	(b) after that person's death and before the first appointed day there was not any disposition for valuable consideration under which the chargeable owner or a predecessor in title of his became entitled to the chargeable interest; and
	(c) there has not before the relevant date been any previous notified chargeable act or event affecting the chargeable interest.
Disposal deemed to have occurred in relation to settled property
130	13. The appropriate deduction shall (subject to paragraph 15 of this Schedule) be made for the purpose of assessing levy in respect of a chargeable act or event where—
135	(a) by virtue of subsection (3) or subsection (4) of section 25 of the Finance Act 1965 (which relate respectively to settled property to which a person becomes absolutely entitled and settled property in which a life interest terminates) a disposal of the chargeable interest is deemed to have occurred before the first appointed day but not more than six years before the relevant date and that disposal constituted a taxable disposal;
140	(b) after the occasion on which that disposal is deemed to have occurred and before the first appointed day there was not any disposition for valuable consideration under which the chargeable owner or a predecessor in title of his became entitled to the chargeable interest; and
	(c) there has not before the relevant date been any previous notified chargeable act or event affecting the chargeable interest.
Application of paragraphs 11, 12 and 13 to disposal of interest in part of chargeable unit
145	14.—(1) The provisions of this paragraph shall have effect for the purpose of assessing levy in respect of a chargeable act or event where a disposal has occurred, or by virtue of any provision of the Finance Act 1965 referred to in paragraph 11, paragraph 12 or paragraph 13 of this Schedule is deemed to have occurred, in relation to an interest (in this Schedule referred to as 'the interest comprised in the disposal') which, being an
150	interest in part of the land in which the chargeable interest subsists, would have been the chargeable interest if it had extended to the whole of that land, and that disposal constituted a taxable disposal.
155	(2) If the conditions specified in sub-paragraphs (a), (b) and (c) of any of those paragraphs would be fulfilled if, in sub-paragraphs (a) and (b) of that paragraph, any reference to the chargeable interest were a reference to the interest comprised in the disposal, then that paragraph shall have effect as if those conditions were fulfilled.
Exclusion of certain chargeable interests in Case C
160	15.—(1) Notwithstanding anything in paragraphs 11 to 14 of this Schedule, none of those paragraphs shall have effect for the purpose of assessing levy in Case C in respect of a project of material development where the chargeable interest is an assessable interest by virtue of which a person is the developing owner in relation to the project in accordance with paragraph (b) or paragraph (e) of section 32(7) of this Act.
165	(2) Where the preceding sub-paragraph has effect in relation to the chargeable interest, then, for the purpose of assessing levy in respect of any subsequent chargeable act or event in relation to which that interest is the chargeable interest, the chargeable act or event referred to in the preceding sub-paragraph shall be disregarded in determining whether the condition specified in paragraph 11(c), paragraph 12(c) or paragraph 13(c) of this Schedule is fulfilled.