The basic gain and its computationU.K.
39.—(1) In the case of a participant chargeable to income tax, the basic gain is a gain of the amount which would be the gain on that disposal for the purposes of TCGA 1992 if the gain were computed without regard to any charge to income tax arising under this Part.
(2) In the case of a participant chargeable to corporation tax, the basic gain is a gain of the amount which would be the gain on that disposal for the purposes of TCGA 1992 if the gain were computed—
(a)without regard to any charge to corporation tax arising under this Part, and
(b)without regard to any indexation allowance on the disposal under TCGA 1992.
(3) The computation of the basic gain is subject to—
(a)regulation 34 (provisions applicable on death);
[F1(aa)regulation 36A (exchanges and schemes of reconstruction);]
(d)regulation 37 (exchange of interests of different classes;
(e)regulation 40 (earlier disposal to which the no gain/no loss basis applies);
(f)regulation 41 (modifications of TCGA 1992);
(g)regulation 42 (losses);
(h)regulation 43 (special rules for certain existing holdings).
Textual Amendments
F1Reg. 39(3)(aa) substituted for reg. 39(3)(b)(c) (8.6.2013) by The Collective Investment Schemes (Tax Transparent Funds, Exchanges, Mergers and Schemes of Reconstruction) Regulations 2013 (S.I. 2013/1400), regs. 1(1), 15(b) (with reg. 1(2))