651 Restriction of indexation relief in relation to relevant disposals.

[FA82 s38]

For the purposes of computing the chargeable gain accruing to a person on a relevant disposal, the adjustment of sums allowable as deductions from the consideration for the disposal which under section 556(2) would otherwise be made shall be made only to—

(a) such part of the amount or value of the consideration in money or money’s worth given by the person or on the person’s behalf wholly and exclusively for the acquisition of the asset, together with the incidental costs to the person of the acquisition, as is equal to the current use value of the asset at the date of the acquisition together with such proportion of the incidental costs to the person of the acquisition as would be referable to such value, or

(b) in the case of an asset to which section 556(3) applies, such part of the market value of the asset on the 6th day of April, 1974, as is equal to the current use value of the asset on that date.