Finance Act 1985

23 (1) Subject to the following provisions of this paragraph, the enactments relating to indexation shall apply with any necessary modifications in relation to assets forming part of a fund as they apply in relation to other assets.

(2) In this paragraph “the enactments relating to indexation” means—

(a) section 86 to 88 of and Schedule 13 to the M1 Finance Act 1982; and

(b) section 68 of this Act and Parts I to III of this Schedule.

(3) For the purposes of the application of the enactments relating to indexation in accordance with sub-paragraph (1) above, if shall be assumed—

(a) that assets forming part of a fund are disposed of and immediately reacquired on the last day of each accounting period; and

(b) that the indexation allowance computed for that accounting period is allocated to the corresponding underwriting year in the same proportion as the gains or losses referred to in [Section 142A of the Capital Gains Tax Act 1979 F1 ]

Textual Amendments

F1 Income and Corporation Taxes Act 1988 Sch. 29 para. 32

Modifications etc. (not altering text)

C1 Finance Act 1988 (c. 39, SIF63:1, 2), s. 113—paragraphs 18, 22 and 23 not to apply to certain disposals of building society and industrial and provident society shares on or after 4 July 1987. Finance Act 1990 (c. 29,SIF 63:1, 2), s. 54—paras. 1(3), 2. 5, 7(3), 8(1)(b) and (c), 11 to 15, 18, 22 and 23 not to apply to certain building society shares etc. held by collective investment schemes and disposed of on or after 20 March 1990.

Marginal Citations

M1 1982 c. 39