Taxes Consolidation Act 1997 Schedule 32 paragraph 25

Disposals in the Year 1993–94 of Units in Certain Unit Trusts

Paragraph 25 of Schedule 32 provided a capital gains tax exemption for the year 1993–94 in respect of units held in unit trusts whose assets consisted entirely of government securities or other assets exempt under section 19 of the Capital Gains Tax Act 1975.

• The paragraph applied only to the year of assessment 1993–94 and was a transitional measure.
• It applied where, throughout the entire year, all of the assets of a unit trust were assets to which section 19 of the Capital Gains Tax Act 1975 applied — principally government securities and similar exempt instruments.
• Where the condition was met, units in that unit trust were deemed not to be chargeable assets for capital gains tax purposes for 1993–94.
• The effect was that any disposal of such units during that year fell outside the scope of capital gains tax entirely.