Taxation of Chargeable Gains Act 1992 Schedule 7 paragraph 4

Application and interpretation

Section 165, Schedule 7, paragraph 4 sets out the definitions and scope of key terms used throughout Part I of Schedule 7, which deals with restrictions on the gift relief available under section 165 for gifts of business assets.

• The paragraph applies whenever a claim for gift relief is made under section 165, covering both direct disposals and disposals into settlements under paragraph 2.
• "Shares" is defined broadly to include securities, and "the principal provision" refers to either section 165(2) or paragraph 2(2) of Schedule 7, depending on the circumstances.
• "The transferor" generally takes its meaning from section 165, but where paragraph 2 applies (settled property), it refers instead to the trustees mentioned in that paragraph.
• The "held-over gain" on any disposal of an asset or shares is determined under section 165(6) or, where applicable, section 165(7), which reduces the held-over gain where there is an unrelieved gain.