Income Tax (Trading and Other Income) Act 2005

455 Listed securities held since 26th March 2003: calculating the profit or loss on disposals

(1) A person’s profit on a disposal, as calculated under section 439, is reduced by any incidental expenses incurred by that person in connection with the disposal or the acquisition of the security that have not been deducted under section 439(4).

(2) A person’s loss on a disposal for the purposes of section 454 (relief for losses) is the amount by which the deductible costs exceed the amount payable on the disposal.

(3) In this section the “deductible costs” means—

(a) the amount paid by the person to acquire the security, and

(b) the incidental expenses incurred by that person in connection with the disposal or the acquisition.

(4) Where a person re-acquires a security, any previous acquisition of it is ignored in determining the person’s incidental expenses within subsection (1) or deductible costs on a subsequent disposal.

(5) For the purposes of this section, no incidental expenses are treated as incurred in connection with transfers and reacquisitions within section 445(2) and (3) (transfer and immediate reacquisition of strips on 5th April).