Section 141.
1(1)None of the enactments specified in sub-paragraph (2) below shall apply in consequence of an event occurring on or after 6th April 1988 if its application would be directly attributable to the disposal of an asset on or before 31st March 1982.
(2)The enactments referred to in sub-paragraph (1) above are—
(a)section 268A(4) of the Taxes Act 1970 (postponement of charge where securities acquired in exchange for business acquired by non-resident company);
(b)section 84 of the Capital Gains Tax Act 1979 (postponement of charge or loss where gilts acquired on compulsory acquisition of shares);
(c)section 111B(3) of that Act (postponement of charge where depreciating asset acquired on compulsory acquisition of land); and
(d)section 117(2) of that Act (postponement of charge where depreciating asset acquired as replacement for business asset).
2Paragraph 3(1) of Schedule 9 to the [1988 c. 39.] Finance Act 1988 (halving of charges deferred from before 6th April 1988) shall have effect, and shall be deemed always to have had effect, with the insertion of the words “and to paragraph 1 of Schedule 15 to the Finance Act 1989” after the words “sub-paragraph (3) below”.
3(1)Sub-paragraph (2) below applies where—
(a)subsection (2) of section 96 of the Finance Act 1988 applies in relation to the disposal of an asset,
(b)if that subsection did not apply, any of the enactments specified in sub-paragraph (3) below would operate to disallow expenditure as a deduction in computing a gain accruing on the disposal, and
(c)the disallowance would be attributable to the reduction of the amount of the consideration for a disposal made after 31st March 1982 but before 6th April 1988.
(2)Where this sub-paragraph applies the amount allowable as a deduction on the disposal shall be reduced by the amount which would be disallowed if section 96(2) did not apply.
(3)The enactments referred to in sub-paragraph (1) above are—
(a)section 21(2) of the Capital Gains Tax Act 1979 (disallowance of allowable expenditure where allowance already given against receipts of compensation or insurance money);
(b)section 72(4) of that Act (disallowance where allowance already given against capital distribution);
(c)section 83(4) of that Act (disallowance where allowance already given against premium on conversion of securities); and
(d)section 109 of that Act (disallowance where allowance already given against gain from small part disposal).
(4)This paragraph shall apply to disposals on or after 6th April 1989.
4(1)Section 68(7A) of the [1985 c. 54.] Finance Act 1985 shall have effect, and shall be deemed always to have had effect—
(a)as if in paragraph (a) for “146(3)” there were substituted “146(2) or (3), 146A(2)”, and
(b)as if after paragraph (e) there were inserted—
“(ee)section 130(3) of the [1985 c. 67.] Transport Act 1985;”.
(2)Paragraph 1(3) of Schedule 8 to the [1988 c. 39.] Finance Act 1988 shall have effect, and shall be deemed always to have had effect, as if after paragraph (e) there were inserted—
“(ee)section 130(3) of the Transport Act 1985;”.
5Paragraph 13(5) of Schedule 8 to the Finance Act 1988 shall have effect, and shall be deemed always to have had effect, as if for the words “subsection (5)” there were substituted the words “subsection (6)”.