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Disposal within the family of business or farm.
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8.—The following section shall be substituted for section 27 of the Principal Act:
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“27.—(1) (a) Subject to the provisions of this section, where an individual who has attained the age of fifty-five years disposes of the whole or part of his qualifying assets to a child of his, relief shall be given in respect of the capital gains tax chargeable on any gain accruing on the disposal.
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(b) For the purposes of paragraph (a), the capital gains tax chargeable in respect of the gain shall be the amount of tax which would not have been chargeable but for that gain.
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(c) In paragraph (a) ‘child’, in relation to a disposal, includes a nephew or a niece who has worked substantially on a full-time basis for the period of five years ending with the disposal in carrying on, or assisting in the carrying on of, the trade, business or profession concerned or the work of, or connected with, the office or employment concerned.
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(2) Nothing in this section shall affect the computation of gains accruing on the disposal of assets other than qualifying assets by an individual who makes a disposal falling within subsection (1).
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(3) Section 26 (3) shall apply to a disposal falling within subsection (1) as it applies to a disposal falling within section 26 (1).
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(4) (a) Where assets comprised in a disposal to a child in respect of which relief has been granted, whether before or after the commencement of the Capital Gains Tax (Amendment) Act, 1978, under this section are, within ten years of the disposal by the individual concerned, disposed of by the child, the capital gains tax which, if subsection (1) had not applied, would have been charged on the individual on his disposal of those assets to the child shall be assessed and charged on the child, in addition to any capital gains tax chargeable in respect of the gain accruing to the child on his disposal of those assets.
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(b) An assessment to give effect to the provisions of this subsection shall not be out of time if made within ten years after the end of the year of assessment in which the assets are disposed of by the child.
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(5) The consideration on a disposal falling within subsection (1) shall not be taken into account for the purposes of aggregation under section 26 (2).”.
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