HC Deb 27 October 1966 vol 734 cc1436-8

8.—(1) The provisions of this paragraph shall have effect in relation to the first subsequent chargeable act or event affecting the original chargeable interest (or, as the case may be, the first subsequent chargeable act or event affecting the interest previously affected) which fulfils the following conditions, that is to say—

  1. (a) that it is a chargeable act or event falling within Case A or Case C, and
  2. (b) that, for the purpose of assessing levy in respect of it, the relevant interest has net development value (ascertained apart from this Part of this Schedule).

(2) If the amount of that net development value (so ascertained) is greater than the credit, then—

  1. (a) for the purpose of assessing levy in respect of that act or event, the net development value of the relevant interest shall be reduced by the credit, and
  2. (b) the credit shall thereupon be taken to be extinguished.

(3) If the amount of that net development value is equal to the credit, then—

  1. (a) for the purpose of assessing levy in respect of that act or event, the relevant interest shall be treated as having no net development value, and
  2. (b) the credit shall thereupon be taken to be extinguished.

(4) If the amount of that net development value is less than the credit, then—

  1. (a) for the purpose of assessing levy in respect of that act or event, the relevant interest shall be treated as having no net development value, and
  2. (b) the credit shall thereupon be reduced by the amount of the net development value ascertained apart from this Part of this Schedule.

9.—(1) The provisions of this paragraph shall have effect in relation to the first subsequent chargeable act or event affecting the original chargeable interest (or, as the case may be, the first subsequent chargeable act or event affecting the interest previously affected) which fulfils the following conditions, that is to say—

  1. (a) that it consists of a disposition granting a tenancy, and
  2. (b) that for the purpose of assessing levy in respect of it, there is net development value realised by the disposition (ascertained apart from this Part of this Schedule).

(2) If the amount of the net development value realised by the disposition (so ascertained) is greater than the credit, then—

  1. (a) for the purpose of assessing levy in respect of that act or event, the net development value realised by the disposition shall be reduced by the credit, and
  2. (b) the credit shall thereupon be taken to be extinguished.

(3) If the amount of that net development value is equal to the credit, then—

  1. (a) for the purpose of assessing levy in respect of that act or event, no net development value shall be taken to be realised by the disposition, and
  2. (b) the credit shall thereupon be taken to be extinguished.

(5) If the amount of that net development value is less than the credit, then—

  1. (a) for the purpose of assessing levy in respect of that act or event, no net development value shall be taken to be realised by the disposition, and
  2. (b) the credit shall thereupon be reduced by the amount of the net development value realised by the disposition, ascertained apart from this Part of this Schedule.

10.—(1) The provisions of this paragraph shall have effect in relation to the first subsequent chargeable act or event affecting the original chargeable interest (or, as the case may be, the first subsequent chargeable act or event affecting the interest previously affected) which is a chargeable act or event falling within Case D or Case E; and in the following provisions of this paragraph 'the primary amount' means the amount of the compensation or consideration, ascertained in accordance with Part IV of Schedule 4 to this Act, less the appropriate deduction (if any) referred to in section 33(2) or, as the case may be, section 34(2) of this Act. (2) If the primary amount is greater than the credit, then—

  1. (a) for the purpose of assessing levy in respect of that act or event, the primary amount shall be treated as reduced by the credit, and
  2. (b) the credit shall thereupon be taken to be extinguished.
(3) If the primary amount is equal to the credit, then—
  1. (a) no levy shall be chargeable in respect of that act or event, and
  2. (b) the credit shall thereupon be taken to be extinguished.
 (4) If the primary amount is less than the credit, then—
  1. (a) no levy shall be chargeable in respect of that act or event, and
  2. (b) the credit shall thereupon be reduced by an amount equal to the primary amount.
 11. Where the credit is reduced in accordance with any of the preceding provisions of this Part of this Schedule, or in accordance with any corresponding provisions contained in regulations made under section (Levy in Case F) of this Act, then, in the case of each successive subsequent chargeable act or event affecting the original chargeable interest (or, as the case may be, each successive subsequent chargeable act or event affecting the interest previously affected) those provisions of this Part of this Schedule and of the regulations shall apply in relation to the credit as so reduced (or as progressively reduced by virtue of this paragraph, as the case may be) until the whole of the credit has been extinguished. 12. The preceding provisions of this Part of this Schedule shall have effect subject to Part III of this Schedule where that Part is applicable.

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