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| Pre-entry gains. |
135. - (1) In the Taxation of Chargeable Gains Act 1992, after section 177A (pre-entry losses) there shall be inserted the following section-
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"Pre-entry gains |
| Restrictions on setting losses against pre-entry gains. |
177B. Schedule 7AA to this Act (which makes provision restricting the losses that may be set against the chargeable gains accruing to a company in the accounting period in which it joins a group of companies) shall have effect."
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(2) After Schedule 7A to that Act there shall be inserted, as Schedule 7AA to that Act, the Schedule set out in Schedule 24 to this Act.
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(3) In subsection (3) of section 213 of that Act (carry back of losses in respect of deemed annual disposal by insurance companies)-
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(a) at the beginning there shall be inserted "Subject to subsection (3A) below,"; and |
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(b) for the "and" at the end of paragraph (c) there shall be substituted- |
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"(ca) none of the intervening accounting periods is an accounting period in which the company joined a group of companies, and". |
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(4) After that subsection there shall be inserted the following subsections-
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"(3A) Subsection (3) above shall have effect where the company in question joins a group of companies in the later period, as if a claim could not be made in respect of the net amount for that period except to the extent (if any) that the net amount is an amount which, assuming there to be gains accruing to the company immediately after the beginning of that period, would fall to be treated under paragraph 4 of Schedule 7AA as a qualifying loss in relation to those gains.
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(3B) References in subsections (3) and (3A) above to a company joining a group of companies shall be construed in accordance with paragraph 1 of Schedule 7AA as if those references were contained in that Schedule."
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(5) Subsections (1) and (2) above and Schedule 24 to this Act have effect in relation to any accounting period ending on or after 17th March 1998.
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(6) Subsection (3) above has effect in relation to any intervening period ending on or after 17th March 1998.
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(7) Subsection (4) above has effect in any case where the earlier accounting period is one ending on or after 17th March 1998.
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| Pre-entry losses. |
136. - (1) In paragraph 9(6) of Schedule 7A to the Taxation of Chargeable Gains Act 1992 (separate application of provisions relating to pre-entry losses in relation to different groups), for "for the purposes of this paragraph as the same group if" there shall be substituted"in relation to any company that is or has become a member of the second group ("the relevant company") as the same group for the purposes of this paragraph if-
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(a) the time at which the relevant company became a member of the first group is a time in the same accounting period as that in which the principal company of the first group became a member of the second group; or |
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(2) This section has effect in relation to any accounting period ending on or after 17th March 1998.
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| De-grouping charges. |
137. - (1) In section 179(2B) of the Taxation of Chargeable Gains Act 1992 (cases where there is a connection between groups successively left by a company)-
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(a) in paragraph (b), for the words from "company which" to "its" there shall be substituted "person or persons who control the company mentioned in paragraph (a) above or who have had it under their"; |
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(b) in paragraph (c), for the words from "company which has" to "its" there shall be substituted "person or persons who have, at any time in that period, had under their"; and |
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(c) in that paragraph, for "fallen", wherever it occurs, there shall be substituted "been a person falling". |
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(2) Subsection (1) above has effect in relation to a company in any case in which the time of the company's ceasing to be a member of the second group is on or after 17th March 1998.
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Abolition of reliefs |
| Phasing out of retirement relief. |
138. - (1) In Schedule 6 to the Taxation of Chargeable Gains Act 1992 (retirement relief etc.), paragraph 13(1) (amount available for relief: basic rule) shall have effect, in relation to qualifying disposals in a year of assessment specified in the first column of the following Table, as if-
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(a) for the references to £250,000 there were substituted references to the amount specified in the second column of that Table; and |
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(b) for the reference to £1 million there were substituted a reference to the amount specified in the third column of that Table. |
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TABLE |
Year |
£250,000 |
£1 million |
1999-00 |
£200,000 |
£800,000 |
2000-01 |
£150,000 |
£600,000 |
2001-02 |
£100,000 |
£400,000 |
2002-03 |
£50,000 |
£200,000 |
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(2) The following provisions, namely-
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(a) section 163 of that Act (relief for disposals by individuals on retirement from family business); |
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(b) section 164 of that Act (other retirement relief); and |
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(c) Schedule 6 to that Act, |
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shall cease to have effect in relation to disposals in the year 2003-04 and subsequent years of assessment.
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(3) In section 157 of that Act (trade carried on by family company), for the words "within the meaning of Schedule 6" there shall be substituted the words "that is to say, a company the voting rights in which are exercisable, as to not less than 5 per cent, by him".
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(4) In subsection (8) of section 165 of that Act (relief for gifts of business assets), for paragraph (a) there shall be substituted the following paragraphs-
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"(a) "personal company", in relation to an individual, means a company the voting rights in which are exercisable, as to not less than 5 per cent, by that individual; |
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(aa) "holding company", "trading company" and "trading group" have the meanings given by paragraph 22 of Schedule A1; and". |
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(5) In the following provisions, namely-
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(a) subsection (8) of section 228 of that Act (conditions for roll-over relief: supplementary); and |
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(b) subsection (14)(b) of section 253 of that Act (relief for loans to traders), |
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for the words "paragraph 1 of Schedule 6" there shall be substituted the words "paragraph 22 of Schedule A1".
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(6) Subsections (3) to (5) above have effect in relation to the year 2003-04 and subsequent years of assessment.
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| Abolition of certain other CGT reliefs. |
139. - (1) The following provisions of the Taxation of Chargeable Gains Act 1992 shall cease to have effect, namely-
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(a) Chapter IA of Part V (roll-over relief on re-investment); and |
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(b) sections 254 and 255 (relief for debts on qualifying corporate bonds). |
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(2) In subsection (1) above-
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(a) paragraph (a) has effect in relation to acquisitions made on or after 6th April 1998; and |
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(b) paragraph (b) has effect in relation to loans made on or after 17th March 1998. |
