As part of the Government's drive to counter tax avoidance, the Chancellor announced in his Pre-Budget Report the ending of business assets gifts relief on the transfer of shares or securities to companies made on or after 9 November 1999.
As part of the Government’s drive to counter tax avoidance, the Chancellor announced in his Pre-Budget Report the ending of business assets gifts relief on the transfer of shares or securities to companies made on or after 9 November 1999.<
The Inland Revenue have today published the draft clause to be included in this year’s Finance Bill implementing the Chancellor’s announcement. This will enable tax payers to see the precise scope of the proposed new measure. A copy is attached to this press release.
Further details are contained in the Inland Revenue Pre-Budget Report Press Release Rev 2 dated 9 November 1999.
DRAFT CLAUSE
Capital gains tax: relief for gifts
(1) In subsection (1) of section 165 of the Taxation of Chargeable Gains Act 1992 (relief for gifts of business assets), for “sections 166 and 167” there shall be substituted “sections 166, 167 and 169”.
(2) In subsection (2)(b)(i) of that section, for “neither listed on a recognised stock exchange nor dealt in on the Unlisted Securities Market” there shall be substituted “not listed on a recognised stock exchange”.
(3) In subsection (3)(b) of that section, after “shares or securities,” there shall be inserted “the transferee is a company or”.
(4) In section 260(1) of that Act (gifts on which inheritance tax is chargeable etc.), for “section 261” there shall be substituted “sections 169 and 261”.
(5) In paragraph 2(2)(b)(i) of Schedule 7 to that Act (relief for gifts of business assets), for “neither listed on a recognised stock exchange nor dealt in on the Unlisted Securities Market” there shall be substituted “not listed on a recognised stock exchange”.
(6) This section has effect in relation to disposals made on or after 9th November 1999.