Section 39 | Exemption or relief for small disposals.

(1)Where the amount of chargeable gains that would, apart from this subsection, be a person’s development gains for any chargeable period does not exceed—^F1

(a)in the case of an individual or the personal representatives of a deceased person as such, £10,000; or^F1

(b)in the case of a company or the trustees of a settlement, £1,000,^F1

no part of those chargeable gains shall be development gains; and where that amount exceeds the limit applicable to that person under paragraph (a) or (b) above only so much of that amount as exceeds the limit shall be development gains.

(2)For the purposes of this section a man and his wife living with him shall be treated as one individual .^F1

(4)Where two or more persons carry on a trade or business in partnership, then, for the purposes of this section—

(a)notwithstanding section 60(b) of the Capital Gains Tax Act 1979 the firm shall be treated as a single individual, and all disposals of partnership assets by the firm shall be treated as made by that individual;^F2

(b)a change in the persons carrying on the trade or business shall be disregarded if, assuming an election under section 154(2) of the Taxes Act to have been duly made, the trade or business would not by virtue of section 154(1) of that Act be treated as discontinued by reason of the change; and

(c)for any year of assessment in or in part of which a company is a member of the partnership, subsection (1) above, shall apply as if in paragraph (a) above for the words “a single individual” and “that individual” there were substituted respectively the words “a company” and “that company”.^F1

(5)Repealed^F3