3(1)If the amount of any chargeable gain or allowable loss which (apart from section 763) would accrue on the material disposal would fall to be determined in a way which, in whole or in part, would take account of the indexation allowance on an earlier disposal to which [F1section 56(2) of the 1992 Act] (disposals on a no gain/no loss basis) applies, the unindexed gain on the material disposal shall be computed as if—
(a)no indexation allowance had been available on any such earlier disposal; and
(b)subject to that, neither a gain nor a loss had accrued to the person making such an earlier disposal.
(2)If the material disposal forms part of a transfer to which section [F1162 of the 1992 Act] (roll-over relief on transfer of business) applies, the unindexed gain accruing on the disposal shall be computed without regard to any deduction which falls to be made under that section in computing a chargeable gain.
(3)If the material disposal is made otherwise than under a bargain at arm’s length and a claim for relief is made in respect of that disposal under [F1section 165 or 260 of the 1992 Act (relief for gifts) the claim shall] not affect the computation of the unindexed gain accruing on the disposal.
(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(5)Notwithstanding section [F116 of the 1992 Act] (losses determined in like manner as gains) if, apart from this sub-paragraph, the effect of any computation under the preceding provisions of this Part of this Schedule would be to produce a loss, the unindexed gain on the material disposal shall be treated as nil; and accordingly for the purposes of this Part of this Schedule no loss shall be treated as accruing on a material disposal.
(6)Section 431 has effect in relation to sub-paragraph (4) above as if it were included in Chapter I of Part XII.
Textual Amendments
F1Words in Sch. 28 para. 3 substituted (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 289, 290, Sch. 10 para. 14(63)(b) (with ss. 60, 101(1), 171, 201(3))
Modifications etc. (not altering text)
C1Sch. 28 para. 3(4) repealed (with effect in accordance with Sch. 8 para. 55 of the repealing Act) by Finance Act 1995 (c. 4), Sch. 29 Pt. 8(5), Note 1