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HMRC internal manual

Capital Gains Manual

Capital receipts not disposals: valuation at 6/4/65

If on a part-disposal a person makes an election under TCGA92/SCH2/PARA17, see CG15500+, the allowable cost for such purposes is the market value of the asset on the deemed reacquisition at 6 April 1965. If this new allowable cost is not less than the ‘small’ receipt, the provisions in CG12820, take effect and the receipt should be deducted in full from the new cost. Even though there is no longer a part-disposal, the election under paragraph 17 Schedule 2 is binding on any future disposal of the asset, see CG15532.