Short-term gains: 1962 - 1971
The FA62 introduced a charge on short-term capital gains under Case VII of Schedule D. The purpose of the legislation was to extend the tax field to certain tax-free profits, particularly from speculative transactions in land and securities. Gains realised on the disposal of assets within a certain period of acquisition (3 years in the case of land, 6 months in all other cases) were charged to Income Tax and, where appropriate, to Surtax. The tax did not, however, extend to chattels, owner-occupied dwelling houses or business assets; in essence it was limited to dealings in land, stocks and shares and currency.
FA65 modified the scope of the tax charge on short-term capital gains under Case VII of Schedule D. In particular the time limits were changed so that a gain realised within 12 months of the acquisition of an asset of whatever kind was to be charged to tax as income. Companies were excluded from the scope of Case VII of Schedule D because the new capital gains code provided that chargeable gains of companies were to be charged to Corporation Tax at the same rate as their income. The charge under Case VII was abolished for 1971-72 onwards by FA71/S56.