Change 1 Article Choose an article Title and introductory text 1 Taxation of capital gains. 2 Persons chargeable. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Gains chargeable to tax. 5 Exemption for first £3,000 of gains 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Time for payment of tax. 7A Payment by instalments of tax on gifts. 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Double taxation relief. 11 Allowance for foreign tax. 12 Non-resident with United Kingdom branch or agency. 13 Foreign assets: delayed remittances. 14 Foreign assets of person with foreign domicile. 15 Non-resident company. 16 Non-resident group of companies. 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Residence etc. and location of assets. 19 Disposal of assets. 20 Capital sums derived from assets. 21 Capital sums: compensation and insurance money. 22 Assets lost or destroyed, or whose value becomes negligible. 23 Mortgages and charges. 24 Hire-purchase. 25 Value shifting. 26 Value shifting: further provisions. 26A Value shifting: distributions within a group followed by a disposal of shares. 26B 26C 26D 27 Time of disposal and acquisition where asset disposed of under contract. 28 Chargeable gains. 29 Losses. 29A 30 Introductory. 31 Consideration chargeable to tax on income. 32 Expenditure: general. 32A Expenditure: amounts to be included as consideration. 33 Exclusion of expenditure by reference to tax on income. 33A 34 Restriction of losses by reference to capital allowances and renewals allowances. 35 Part disposals. 36 Assets derived from other assets. 37 Wasting assets. 38 Wasting assets: straightline restriction of allowable expenditure. 39 Wasting assets qualifying for capital allowances. 40 Consideration due after time of disposal. 41 Contingent liabilities. 42 Expenditure reimbursed out of public money. 43 Supplemental. 44 Husband and wife. 45 Tax on married woman’s gains. 46 Nominees and bare trustees. 47 Expenses in administration of estates and trusts. 48 Liability for tax. 49 Death: general provisions. 50 Death: application of law in Scotland. 51 Meaning of “settled property”. 52 Trustees of settlements. 53 Gifts in settlement. 54 Person becoming absolutely entitled to settled property. 55 Termination of life interest etc. 56 Death of life tenant: exclusion of chargeable gain. 56A Effect on sections 55 and 56 of relief under Finance Act 1980, section 79. 57 Death of annuitant. 58 Disposal of interests in settled property. 59 Gifts: recovery from donee. 60 Partnerships. 61 Insolvents’ assets. 62 Transactions between connected persons. 63 Connected persons: interpretation. 64 Interpretation. 65 Pooling. 66 Disposal on or before day of acquisition. 67 Exemptions for gilt-edged securities and qualifying corporate bonds etc. 68 Identification (general). 69 Identification: disposal to husband or wife and third person. 70 Re-acquisition after sale at a loss. 71 Exemption for government non-marketable securities. 72 Distribution which is not a new holding within Chapter II. 73 Disposal of right to acquire shares. 74 Disposal of shares: relief in respect of income tax consequent on shortfall in distributions. 75 Shares in close company transferring assets at an undervalue. 76 Consideration for acquisition of shares under share option schemes. 77 Application of sections 78 to 81. 78 Equation of original shares and new holding. 79 Consideration given or received by holder. 80 Part disposal of new holding. 81 Composite new holdings. 82 Equation of converted securities and new holding. 83 Premiums on conversion of securities. 84 Compensation stock. 85 Exchange of securities for those in another company. 86 Reconstruction or amalgamation involving issue of securities. 87 Restriction on application of sections 85 and 86. 88 Procedure for clearance in advance. 89 Stock dividends: consideration for new holding. 90 Capital gains on certain stock dividends. 91 Application of Chapter II to quoted options. 92 Interpretation. 93 Application of Act to unit trusts. 94 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 Unit trusts for exempt unit holders. 97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 Transfer of company’s assets to unit trust which later comes within section 96 or 97. 99 Funds in court. 100 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 Relief on disposal of private residence. 102 Amount of relief. 103 Amount of relief: further provisions. 104 Private residence occupied under terms of settlement. 105 Private residence occupied by dependent relative. 106 Leases of land and other assets. 107 Small part disposals. 108 Part disposal to authority with compulsory powers. 109 Part disposal: consideration exceeding allowable expenditure. 110 Compensation paid on compulsory acquisition. 111 Time of disposal and acquisition. 111A Roll-over relief on compulsory acquisition. 111B 112 Grants for giving up agricultural land. 113 Woodlands. 114 Interaction with development land tax and other taxation. 115 Roll-over relief. 116 Assets only partly replaced. 117 New assets which are depreciating assets. 118 Relevant classes of assets. 119 Assets of Class 1. 120 Trade carried on by family company: business assets dealt with by individual. 121 Activities other than trades, and interpretation. 122 Appropriations to and from stock. 123 Roll-over relief on transfer of business. 123A 124 Relief on transfer. 125 Transfer by way of capital distribution from family company. 126 Relief for gifts of business assets. 126A Section 126 relief: gifts to non-residents. 126B Section 126 relief: gifts to foreign-controlled companies. 126C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 Wasting assets. 128 Chattel exemption. 129 Leases of property other than land. 130 Passenger vehicles. 131 Decorations for valour or gallant conduct. 132 Commodities and other assets without earmark. 132A 133 Foreign currency for personal expenditure. 134 Debts. 135 Debts: foreign currency bank accounts. 136 Relief in respect of loans to traders. 136A Relief for qualifying corporate bonds. 136B Section 136A: supplementary. 137 Options and forfeited deposits. 138 Options: application of rules as to wasting assets. 139 Quoted options treated as part of new holdings. 140 Policies of insurance. 141 Disallowance of insurance premiums as expenses. 142 Underwriters. 142A Disposal of assets in premiums trust fund etc. 143 Life assurance and deferred annuities. 144 Superannuation funds, annuities and annual payments. 144A Approved profit sharing and share option schemes. 145 Charities. 146 Gifts to charities etc. 146A 147 Works of art etc. 147A Gifts on which inheritance tax is chargeable etc. 147B Section 147A relief: gifts to non-residents. 148 Maintenance funds for historic buildings. 149 Employee trusts. 149A Building societies and life policies. 149B Miscellaneous exemptions. 149C Business expansion schemes. 149D Personal equity plans. 150 Valuation: general. 151 Assets disposed of in a series of transactions. 152 Unquoted shares and securities. 153 Value determined for capital transfer tax. 154 Income tax decisions. 155 Interpretation. 156 Commencement. 157 Savings, transitory provisions and consequential amendments. 158 Repeals. 159 Continuity and construction of references to old and new law. 160 Short title. SCHEDULE 1 Application of Exempt Amount in Particular Cases SCHEDULE 2 Gilt-Edged Securities SCHEDULE 3 Leases SCHEDULE 4 Relief for Gifts of Business Assets SCHEDULE 5 Assets Held on 6th April 1965 SCHEDULE 6 Transitory SCHEDULE 7 Consequential Amendments SCHEDULE 8 Repeals
What to do with it
As published
120 Trade carried on by family company: business assets dealt with by individual.
In relation to a case where—
(a) the person disposing of, or of his interest in, the old assets and acquiring the new assets, or an interest in them, is an individual, and
(b) the trade or trades in question are carried on not by that individual but by a company which, both at the time of the disposal and at the time of the acquisition referred to in paragraph (a) above, is his family company, within the meaning of Schedule 20 to the Finance Act 1985,
any reference in sections 115 to 119 above to the person carrying on the trade (or the two or more trades) includes a reference to that individual.
Your wording
Your change, as a redline
120 Trade carried on by family company: business assets dealt with by individual.
In relation to a case where—
(a) the person disposing of, or of his interest in, the old assets and acquiring the new assets, or an interest in them, is an individual, and
(b) the trade or trades in question are carried on not by that individual but by a company which, both at the time of the disposal and at the time of the acquisition referred to in paragraph (a) above, is his family company, within the meaning of Schedule 20 to the Finance Act 1985,
any reference in sections 115 to 119 above to the person carrying on the trade (or the two or more trades) includes a reference to that individual.
A proposal here is not law. Support on Solon is evidence that people want the change; the official route says what it takes to make it law.