Finance Act, 1984

Amendment of section 25 (private residence) of Capital Gains Tax Act, 1975.

67.Section 25 of the Capital Gains Tax Act, 1975 , is hereby amended by the insertion after subsection (10) of the following subsection:

“(10A) (a) In this subsection—

‘base date’, in relation to an asset disposed of by an individual, means the date of acquisition by him of the asset or, if the asset was held by him on the 6th day of April, 1974, that date;

‘base value’, in relation to an asset disposed of by an individual, means the amount or value of the consideration, in money or money's worth, given by him or on his behalf wholly and exclusively for the acquisition of the asset exclusive of the incidental costs to him of the acquisition or, if the asset was held by him on the 6th day of April, 1974, the market value of the asset on that date;

‘current use value’ and ‘development land’ have the same meanings as in section 36 of the Finance Act, 1982 .

(b) Where—

(i) a gain accrues to an individual on the disposal of, or of an interest in, an asset which is development land, and

(ii) apart from this subsection relief would be given under this section in respect of the disposal of that asset (being an asset within subsection (1) or (9A)), and

(iii) the disposal was made on or after the 25th day of January, 1984,

then, subject to paragraph (c), the relief aforesaid shall be given in respect of the gain (or, where appropriate, of a portion of the gain), only to the extent (if any) to which such relief would be given if, in computing the chargeable gain accruing on the disposal (notwithstanding that the disposal was a disposal of development land), there were excluded from the computation—

(I) the amount (if any) by which the base value of the asset exceeds the current use value of the asset on the base date,

(II) the amount by which the consideration for the disposal of the asset exceeds the current use value of the asset on the date of the disposal,

(III) if the asset was not held by him on the 6th day of April, 1974, such proportion (if any) of the incidental costs to the individual of the acquisition of the asset as would be referable to the amount (if any) referred to in subparagraph (I), and

(IV) such proportion of the incidental costs to the individual of the disposal of the asset as would be referable to the amount referred to in subparagraph (II).

(c) Paragraph (b) shall not apply to a disposal made by an individual in any year of assessment if the total consideration in respect of all disposals made by that individual in that year and to which that paragraph would otherwise apply does not exceed £15,000.”.