Finance Act, 1994
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Amendment of section 31 (unit trusts) of Capital Gains Tax Act, 1975. |
64.—(1) Section 31 of the Capital Gains Tax Act, 1975 , is hereby amended, as respects any disposal of units in a unit trust on or after the 6th day of April, 1994, by the deletion of subsection (5). | |
(2) Subject to subsection (1), section 31 of the Capital Gains Tax Act, 1975 , shall have effect, as respects any disposal of units in a unit trust on or after the 1st day of September, 1993, as if there were substituted for subsection (5) the following subsection: | ||
“(5) If throughout a year of assessment all the assets of a unit trust are assets, whether mentioned in section 19 , or in any other provision of this Act, or of any other enactment relating to capital gains tax, to which section 19 applies, the units in the unit trust shall for that year be deemed not to be chargeable assets for the purposes of this Act.”. | ||
(3) Where there is a disposal in the year 1994-95, or any subsequent year of assessment, of units in a unit trust— | ||
(a) not being an undertaking for collective investment (within the meaning of section 17 of the Finance Act, 1993 ) which began carrying on business on or after the 25th day of May, 1993, | ||
(b) all the assets of which were, throughout the year of assessment 1993-94, assets, whether mentioned in section 19 or in any other provision of the Capital Gains Tax Acts, to which section 19 applies, and | ||
(c) the person disposing of the units acquired the units before the 6th day of April, 1994, | ||
then the chargeable gain on the disposal shall be computed as if the units had been sold and immediately reacquired by that person on the 5th day of April, 1994, at their market value at that date: | ||
Provided that this subsection shall not apply in relation to the disposal of units— | ||
(i) if, as a consequence of the application of this subsection, a gain would accrue on that disposal to the person making the disposal and either a smaller gain or loss would so accrue if this subsection did not apply, or | ||
(ii) if, as a consequence of the application of this subsection, a loss would so accrue and either a smaller loss or a gain would accrue if this subsection did not apply, | ||
and, accordingly, in a case to which paragraph (i) or (ii) of this proviso applies, the amount of the gain or loss accruing on the disposal shall be computed without regard to the provisions of this subsection (other than this proviso) but, in a case where this proviso would otherwise substitute a loss for a gain or a gain for a loss, it shall be assumed, in relation to the disposal, that the units were acquired by the person disposing of them for a consideration such that neither a gain nor a loss accrued to that person on making the disposal. |