Part II General Provisions relating to computation of gains and acquisitions and disposals of assets
Chapter III Computation of gains: General provisions
Re-basing to 1982, and assets held on 6th April 1965
35 Assets held on 31st March 1982 (including assets held on 6th April 1965).
1
This section applies to a disposal of an asset which was held on 31st March 1982 by the person making the disposal.
2
F142A
For the purposes of corporation tax, subsection (2) above has effect subject to subsections (3) to (8) below (and see also subsections (9) and (10)).
3
Subject to subsection (5) below, subsection (2) above shall not apply to a disposal—
a
where a gain would accrue on the disposal to the person making the disposal if that subsection did apply, and either a smaller gain or a loss would so accrue if it did not,
b
where a loss would so accrue if that subsection did apply, and either a smaller loss or a gain would accrue if it did not,
c
where, either on the facts of the case or by virtue of Schedule 2, neither a gain nor a loss would accrue if that subsection did not apply, F11...
F2ca
where, by virtue of section 195B, 195C or 195E, neither a gain nor a loss accrues to the person making the disposal, or
d
where neither a gain nor a loss would accrue by virtue of any of F12the no gain/no loss provisions.
F14
Where in the case of a disposal of an asset—
a
the effect of subsection (2) above would be to substitute a loss for a gain or a gain for a loss, but
b
the application of subsection (2) is excluded by subsection (3),
it shall be assumed in relation to the disposal that the asset was acquired by the person making the disposal for a consideration such that, on the disposal, neither a gain nor a loss accrues to F7that person.
5
6
An election by a person under subsection (5) above shall be irrevocable and shall be made by notice to F17an officer of the Board at any time before 6th April 1990 or at any time during the period beginning with the day of the first relevant disposal and ending—
aa
F6... 2 years after the end of the accounting period in which the disposal is made; or
b
F16... at such later time as the Board may allow;
and “the first relevant disposal” means the first disposal to which this section applies which is made by the person making the election.
7
An election made by a person under subsection (5) above in one capacity does not cover disposals made by F10that person in another capacity.
8
All such adjustments shall be made, whether by way of discharge or repayment of tax, the making of assessments or otherwise, as are required to give effect to an election under subsection (5) above.
9
Schedule 2 shall have effect F13for the purposes of corporation tax in relation to disposals of assets owned on 6th April 1965 in cases where neither subsection (2) nor subsection (4) above applies.
10
Schedule 3, which contains provisions supplementary to subsections (1) to (8) above, shall have effect F4for the purposes of capital gains tax and corporation tax.