Taxes Management Act 1970 section Schedule 3ZAA paragraph 4

Tax to which a plan relates

Section Schedule 3ZAA paragraph 4 explains how much of a capital gains tax exit charge can be covered by a payment plan and defines key terms used throughout the Schedule.

• A CGT exit charge payment plan can cover the whole or only part of the exit charge attributable to the relevant asset or assets
• The "deferrable exit charge" is the total exit charge attributable to the asset or assets covered by the plan
• The "deferred exit charge" is the actual amount of the exit charge that the plan covers, which may be all or part of the deferrable exit charge
• The exit charge attributable to a specific asset is calculated as a proportion — the gain on that asset compared to the total gains giving rise to the exit charge in the tax year