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Chapter 6
Capital Gains Tax
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Amendment of section 604 of Principal Act (disposals of principal private residence)
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37. Section 604 of the Principal Act is amended by the insertion of the following subsection after subsection (14):
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“(15) (a) This subsection applies where an individual disposes of or of an interest in an asset (being an asset within subsection (2) or (11)) by way of a lottery or game with prizes and the proceeds of the lottery or game exceed the market value of the asset on the date of the disposal.
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(b) Where this subsection applies, the consideration for the purposes of computing any chargeable gain accruing on the disposal referred to in paragraph (a) shall be the whole of the proceeds of the lottery or game referred to in paragraph (a) or, where there is more than one prize, so much of those proceeds as are referable to the asset referred to in paragraph (a).
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(c) Where—
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(i) a gain accrues to an individual on a disposal referred to in paragraph (a), and
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(ii) apart from this subsection relief would be given under this section in respect of the disposal referred to in paragraph (a),
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then that relief shall be given in respect of the gain only to the extent (if any) to which such relief would be given if, in computing the chargeable gain accruing on the disposal, there were excluded from the computation—
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(I) the amount by which the consideration for the disposal of the asset exceeds the market value of the asset on the date of the disposal, and
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(II) such proportion of the incidental costs to the individual of the disposal as would be referable to the amount referred to in clause (I).”.
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