Section 244 — Taxation of Chargeable Gains Act 1992: Part disposal: consideration exceeding allowable expenditure.

Part disposal: consideration exceeding allowable expenditure. 244 1 The provisions of sections 242(2) and 243(2) shall have effect subject to this section.

2 Where the allowable expenditure is less than the consideration for the part disposal (or is nil)—

a the said provisions shall not apply, and b if the recipient so elects (and there is any allowable expenditure)—

i the consideration for the part disposal shall be reduced by the amount of the allowable expenditure, and, ii none of that expenditure shall be allowable as a deduction in computing a gain accruing on the occasion of the part disposal or on any subsequent occasion. In this subsection “ allowable expenditure ” means expenditure which, immediately before the part disposal, was attributable to the holding of land under paragraphs (a) and (b) of section 38(1).

3 An election under subsection (2)(b) above shall be made—

a for the purposes of capital gains tax, on or before the first anniversary of the 31st January next following the year of assessment in which the part disposal is made;

b for the purposes of corporation tax, within 2 years after the end of the accounting period in which the part disposal is made.