Section 103KF — Taxation of Chargeable Gains Act 1992: Relief for external investors on disposal of partnership asset

Relief for external investors on disposal of partnership asset 103KF 1 If—

a a chargeable gain accrues to an external investor in an investment scheme on the disposal of one or more partnership assets, and b the external investor makes a claim for relief under this section, then subsection (2) applies in relation to the disposal.

2 The amount of the chargeable gain is to be reduced by an amount equal to— I − C where— I is an amount equal to such part of the sum invested in the fund by the external investor which on a just and reasonable basis is referable to the asset or assets disposed of, and C is the amount deducted under section 38(1)(a) in respect of consideration given wholly and exclusively for the acquisition of the asset or assets.

3 In this section, “ external investor ” and “ investment scheme ” have the same meaning as in section 23I of ITTOIA 2005 (see section 23R of that Act).