SCHEDULES
SCHEDULE 5Provisions Supplementary to Section 39
Interpretation
1
In this Schedule " the principal section " means section 39 of this Act.
Net proceeds
2
Paragraph 14(5) of Schedule 6 to the [1965 c. 25.] Finance Act 1965 (consideration to be brought into account without discount etc.) shall apply in the computation of the net proceeds of a disposal for the purposes of the principal section as it applies in the computation under that Schedule.
3
Paragraph 14(2)(a) of Schedule 7 to the Finance Act 1965 (consideration for option) shall apply for the computation of the net proceeds of a disposal for the purposes of the principal section as it applies for the computation of chargeable gains.
Disregard of proceeds of certain disposals
4
1
For the purposes of the principal section the consideration for a disposal shall be disregarded if, under any provision other than section 38(2) of this Act—
a
it falls to be excluded from the computation of a gain, arising on the disposal; or
b
a gain accruing on the disposal is not a chargeable gain.
2
If by virtue of section 29(3) of the [1965 c. 25.] Finance Act 1965 (private residences) a fraction of the gain accruing to an individual on a disposal is not a chargeable gain, that fraction of the net proceeds of the disposal shall be disregarded for the purposes of the principal section.
5
For the purposes of the principal section the consideration for a disposal shall be disregarded if the disposal is one as respects which any of the following provisions of the Taxes Act applies, that is to say—
a
section 267 (company reconstruction or amalgamation: transfer of assets);
b
section 273 (transfers within a group);
c
section 342 (disposals of land between the Housing Corporation and housing societies).
Gifts to charities etc.
6
In section 119(2)(a) of the [1972 c. 41.] Finance Act 1972 (gifts to charities etc.) after the words " 1971 " there shall be inserted the words " or section 39 of the Finance Act 1974 ".