2(1)Section 2 (persons and gains chargeable to capital gains tax, and allowable losses) is amended as follows.
F1(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3)In paragraph (b) of that subsection, omit “77, 86,".
(4)After that subsection insert—
“(6)Allowable losses must (notwithstanding section 2A(6)) be deducted under paragraph (a)(i) of subsection (5) above before any may be deducted under paragraph (aa)(i) of that subsection.
(7)Where in any year of assessment—
(a)there are amounts treated as accruing to a person by virtue of section 77 or 86,
(b)two or more of those amounts, or elements of them—
(i)relate to different settlements, and
(ii)attract taper relief (by virtue of subsection (5)(aa)(ii) above) at the same rate, or are not eligible for taper relief, and
(c)losses are deductible from the amounts or elements mentioned in paragraph (b) above (“the equal-tapered amounts”) but are not enough to exhaust them all,
the deduction applicable to each of the equal-tapered amounts shall be the appropriate proportion of the aggregate of those losses.
The “appropriate proportion” is that given by dividing the equal-tapered amount in question by the total of the equal-tapered amounts.
(8)The references to section 86 in subsection (5)(aa) above (in the opening words) and subsection (7)(a) above include references to that section read with section 10A.”.
Textual Amendments
F1Sch. 11 para. 2(2) omitted (with effect in accordance with Sch. 2 para. 56(3) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 2 para. 55(e)(iv)