(1)

(a) The Principal Act is amended in Chapter 7 of Part 19 by the insertion after section 603 of the following:

"603A. Disposal of site to child.

(1) This section applies to the disposal of land which at the date of disposal has a market value which does not exceed £200,000.

(2) Subject to this section, a chargeable gain shall not accrue on a disposal of land to which this section applies where the disposal -

(a) is by a parent to a child of the parent, and

(b) is for the purpose of enabling the child to construct a dwelling house on the land which dwelling house is to be occupied by the child as his or her only or main residence.

(3) Where a child -

(a) at any time disposes of the land or a part of the land referred to in subsection (2), other than to his or her spouse, and

(b) the land being disposed of does not contain a dwelling house which -

(i) was constructed by the child since the time of acquisition of the land, and

(ii) has been occupied by the child as his or her only or main residence for a period of 3 years,