Section 91: Increase in tax payable under section 87 or 89(2)., Taxation of Chargeable Gains Act 1992

This section applies if—

chargeable gains are treated under section 87 ... or 89(2) as accruing to an individual directly, or indirectly, by virtue of the matching (under section 87A) of all or part of a capital payment with the section 1(3) amount for a tax year ("the relevant tax year"),

the individual is charged to tax by virtue of that matching, and

the capital payment was made more than one year after the end of the relevant tax year.

Where part of a capital payment is matched, references in subsections (2) and (3) to the capital payment are to the part matched.

The tax payable by the individual in respect of the payment shall be increased by the amount found under subsection (3) below, except that it shall not be increased beyond the amount of the payment; and an assessment may charge tax accordingly.

The amount is one equal to the interest that would be yielded if an amount equal to the tax which would be payable by the individual in respect of the payment (apart from this section) carried interest for the chargeable period at the rate of 10 per cent. per annum.

The chargeable period is the period which—

begins with the later of the 2 days specified in subsection (5) below, and

ends with 30th November in the year of assessment following that in which the capital payment is made.

The 2 days are—

1st December in the tax year immediately after the relevant tax year, and

1st December falling 6 years before 1st December in the year of assessment following that in which the capital payment is made.

The Treasury may by order substitute for the percentage specified in subsection (3) above (whether as originally enacted or as amended at any time under this subsection) such other percentage as they think fit.

An order under subsection (6) above may provide that an alteration of the percentage is to have effect for periods beginning on or after a day specified in the order in relation to interest running for chargeable periods beginning before that day (as well as interest running for chargeable periods beginning on or after that day).

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Section 91: Increase in tax payable under section 87 or 89(2).

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