Taxation of Chargeable Gains Act 1992

[F1 Section 37 operates to exclude part of the consideration U.K.

Textual Amendments

F1 Sch. 8A inserted (with effect in accordance with Sch. 9 para. 3 of the amending Act) by Finance Act 2010 (c. 13), Sch. 9 para. 2

3 (1) This paragraph applies where the section 37 amount constitutes part of the unreduced consideration. U.K.

(2) For the purposes of this Act the relevant disposal is to be treated as if it were—

(a) a disposal of so much of the section 252 debt as is represented by the section 37 proportion of the sum mentioned in sub-paragraph (3) (“debt A”), and

(b) a separate disposal of so much of the section 252 debt as is represented by the remainder of that sum (“debt B”).

(3) That sum is—

(a) if the relevant disposal is a disposal of the whole of the section 252 debt, the sum referred to in section 252(1), and

(b) if the relevant disposal is a part disposal of that debt, the proportion of the sum referred to in section 252(1) to which that part disposal relates.

(4) Sub-paragraphs (5) to (9) apply for the purposes of—

(a) the computation of the gain accruing on the disposals under sub-paragraph (2), and

(b) the application of Chapter 3 of Part 2 of this Act in relation to the part of the debt (if any) which remains undisposed of.

(5) The consideration for the disposal (before any exclusion under section 37) is—

(a) in the case of debt A, the section 37 amount, and

(b) in the case of debt B, the remainder of the unreduced consideration.

(6) If the relevant disposal is not a part disposal of the section 252 debt—

(a) the section 37 proportion of the debt costs and the disposal costs is to be attributed to debt A, and

(b) the remaining debt costs and disposal costs are to be attributed to debt B.

(7) Sub-paragraphs (8) and (9) apply if the relevant disposal is a part disposal of the section 252 debt.

(8) Section 42(2) applies as if it provided for the debt costs to be apportioned between debt A, debt B and the remainder of the section 252 debt in the proportions which those parts of the section 252 debt bear to one another.

(9) The section 37 proportion of the disposal costs is to be attributed to debt A and the remaining disposal costs are to be attributed to debt B.

(10) Any loss accruing to the individual on the disposal of debt A is not an allowable loss.]