3In section 77 (charge on settlor with interest in settlement), in subsection (1)(b) (amount by reference to which settlor is charged), for the words from “would" to the end substitute— “would be chargeable to tax for the year in respect of those gains if—
(i)the gains were not eligible for taper relief, but section 2(2) applied as if they were (so that the order of deducting losses provided for by section 2A(6) applied), and
(ii)section 3 were disregarded,
and ”.