SCHEDULES

F1SCHEDULE A1 Application of taper relief

Further rules for assets derived from other assets

14

(1)

This paragraph applies if, in a case where—

(a)

assets have merged,

(b)

an asset has divided or otherwise changed its nature, or

(c)

different rights or interests in or over any asset have been created or extinguished at different times,

the value of any asset disposed of is derived (through one or more successive events falling within paragraphs (a) to (c) above but not otherwise) from one or more other assets acquired into the same ownership at a time before the acquisition of the asset disposed of.

(2)

The asset disposed of shall be deemed for the purposes of this Schedule to have been acquired at the earliest time at which any asset from which its value is derived was acquired into the same ownership.

(3)

Any determination of whether the asset disposed of was a business asset at a time when another asset from which its value is derived was in the ownership of the person making the disposal shall be made as if that other asset were the asset disposed of or, as the case may be, were comprised in it.