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12 1988

FINANCE ACT, 1988

PART V

Capital Acquisitions Tax

Amendment of section 63 (allowance for capital gains tax on the same event) of Finance Act, 1985.

66. —(1) Section 63 (1) of the Finance Act, 1985 , is hereby amended by the substitution for “the same, up to the net amount of the same” of—

“the same:

Provided that, in relation to each asset, or to a part of each asset, so disposed of, the amount deducted shall be the lesser of—

(a) an amount equal to the amount of the capital gains tax attributable to such asset, or to the part of such asset, or

(b) an amount equal to the amount of the gift tax or inheritance tax attributable to the property which is that asset, or that part of that asset”,

and the said subsection 63 (1), as so amended, is set out in the Table to this section.

(2) This section shall apply where gift tax or inheritance tax is charged in respect of property on an event happening on or after the 6th day of April, 1988.

TABLE

63.—(1) Where gift tax or inheritance tax is charged in respect of property on an event happening on or after the 30th day of January, 1985, and the same event constitutes for capital gains tax purposes a disposal of an asset (being the same property or any part of the same property), the capital gains tax, if any, chargeable on the disposal shall not be deducted in ascertaining the taxable value for the purposes of the gift tax or inheritance tax but, in so far as it has been paid, shall be deducted from the net gift tax or inheritance tax as a credit against the same:

Provided that, in relation to each asset, or to a part of each asset, so disposed of, the amount deducted shall be the lesser of—

(a) an amount equal to the amount of the capital gains tax attributable to such asset, or to the part of such asset, or

(b) an amount equal to the amount of the gift tax or inheritance tax attributable to the property which is that asset, or that part of that asset.