Section 169VL: Cap on relief for disposal by trustees of a settlement

This section applies where—

For the purposes of this section there is an "excess amount" in relation to the individual concerned if the aggregate of—

exceeds £1 million.

The rate in section 169VC(2) applies to the current gain only to the extent (if any) that the current gain when added to the aggregate of the total amounts mentioned in subsection (2)(b) and (c) does not exceed £1 million.

Section 1H (rates of capital gains tax) applies to so much of the current gain as is not subject to the rate in section 169VC(2).

In this section—

• "the current gain" means the reckonable trust gain on the disposal in question;

• "eligible beneficiary", in relation to a disposal, is to be read in accordance with section 169VH(2);

• "reckonable trust gain", in relation to any trust disposal in respect of which the individual concerned is an eligible beneficiary, means—

  (a)if section 169VI(1)(c) applies in relation to the disposal, that individual's share of the relevant gain on that disposal, within the meaning given by section 169VI(4) and (5);

  (b)otherwise, the relevant gain on that disposal;

• "the relevant gain", in relation to a disposal, has the meaning given by section 169VC(3);

• "trust disposal" means a disposal by the trustees of a settlement.