(1)A loss on the disposal of an asset shall not be an allowable loss to the extent to which it is attributable to value having passed out of other assets, being shares in or rights over a company which by virtue of the passing of value are treated as disposed of under paragraph 15(2) of Schedule 7 to the [1965 c. 25.] Finance Act 1965 (deemed disposal where person in control of company transfers value between different shares or rights).
(2)This section applies to a loss on a disposal on or after 17th June 1975.