Finance Act 1974

8 (1) Where, in the case of any person, section 39(1) of this Act applies in relation to any chargeable period, then, if any development losses accrued to him in that period, they shall for the purposes of section 176 or 179 of the Taxes Act (Case VI losses) be treated as reduced by the amount of the development gains which, but for the said section 39(1), would have accrued to him in the period in which the development losses accrued.

(2) Subsection (2) of section 39 of this Act shall not apply, in the case of any person, in relation to any chargeable period in which any development losses accrue to him ; but where, in the case of any person, that subsection would, apart from this sub-paragraph, apply in relation to any chargeable period, then, if the aggregate of any development gains accruing to him in that period (computed without reference to that subsection) exceeds the aggregate of any development losses accruing to him in that period, the total of the development gains accruing to him in respect of all the disposals of interests in land to which section 38 of this Act applies made by him in that period shall be treated for the purposes of the Tax Acts as reduced to an amount equal to a fraction of that excess, and that fraction shall be the fraction that would otherwise apply under paragraph (i) or (ii) of that subsection, as the case may be.

(3) For any year of assessment in which a married woman is living with her husband, they shall be treated for the purposes of this paragraph as one person.