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CHAPTER 5
Capital Gains Tax
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Amendment of section 598 (disposal of business or farm on “retirement”) of Principal Act.
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59.—Section 598(1) of the Principal Act is amended in the definition of “qualifying assets” by substituting the following for paragraphs (ii) and (iii):
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“(ii) (I) the shares or securities, which the individual has owned for a period of not less than 10 years ending with the disposal, being shares or securities of a relevant company that is a company—
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(A) which has been a trading company, or a farming company, and the individual's family company, or
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(B) which has been a member of a trading group, of which the holding company is the individual's family company,
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during a period of not less than 10 years ending with the disposal and the individual has been a working director of the relevant company for a period of not less than 10 years during which period he or she has been a full-time working director of the relevant company for a period of not less than 5 years, and
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(II) land, machinery or plant (if any) which the individual has owned for a period of not less than 10 years ending with the disposal, and which—
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(A) was used throughout that period for the purposes of the relevant company, and
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(B) is disposed of at the same time and to the same person as the shares or securities referred to in subparagraph (I),
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(iii) land used for the purposes of farming carried on by the individual which he or she has owned and used for that purpose for a period of not less than 10 years ending with the transfer of an interest in that land for the purposes of complying with the terms of the Scheme, and
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(iv) land which has been let by the individual at any time in the period of 5 years ending with the disposal, where—
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(I) immediately before the time the land was first let in that period, the land was owned by the individual and used for the purposes of farming carried on by the individual for a period of not less than 10 years ending at that time, and
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(II) the disposal is a disposal referred to in section 652(5)(a);”.
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