18(1)This paragraph applies where a participant in a relevant offshore fund—U.K.
(a)holds rights in a relevant offshore fund immediately before the effective date, and
(b)disposes of those rights on or after that date.
(2)For the purposes of TCGA 1992 the participant is to be treated as if the acquisition cost for those rights were the pre-commencement acquisition cost.
(3)“The effective date” means—
(a)if the participant has made an election under paragraph 15, the election day, or
(b)otherwise, the commencement day.
(4)“Acquisition cost” means the total of the consideration, costs and expenditure described in section 38(1)(a) and (b) of TCGA 1992 (acquisition and disposal costs etc).
(5)“Pre-commencement acquisition cost” means the total of the consideration, costs and expenditure that would have been allowable as a deduction under section 38(1)(a) and (b) of TCGA 1992 if the participant had disposed of the rights immediately before the effective date.