Taxation of Chargeable Gains Act 1992 Schedule 7AD paragraph 6

Apportionment in case of part disposal

Section 6 of Schedule 7AD sets out how to determine the market value of remaining property when an insurance company makes a part disposal of its interest in a partnership's relevant assets, for the purposes of apportioning costs under the part disposal rules.

• When a part disposal occurs, the market value of the undisposed property must be calculated for cost apportionment purposes
• If no further disposal takes place in the same period of account, the remaining value equals the company's share of the book value of the partnership's relevant assets at the period end
• If further disposals do occur in the same period of account, the remaining value equals the total consideration from those further disposals plus any remaining book value at the period end
• The book value used is always that shown in the partnership's own accounts at the end of the relevant period of account

---