(1)Section 117 of the 1979 Act (roll-over relief: depreciating assets) shall be amended as mentioned in subsections (2) to (4) below.
(2)In subsection (1) after “116 above” there shall be inserted “and section 33 of the Finance Act 1990”.
(3)The following subsection shall be inserted after subsection (2)—
“(2A)Where section 33 of the Finance Act 1990 has effect subject to the provisions of this section, subsection (2)(b) above shall have effect as if it read—
“(b)section 36(3) of the Finance Act 1990 applies as regards asset No.2 (whether or not by virtue of section 36(5)), or”.
(4)In subsection (3) for “and so claims” there shall be substituted “and claims”.
(5)Where a charge can be said to accrue by virtue of section 36 or 37 above in respect of any of the gain carried forward by virtue of section 33(1) or (3) above, so much of the gain charged shall not be capable of being carried forward (from assets to other property or from property to other property) under sections 115 to 121 of the 1979 Act on a replacement of business assets.
(6)For the purpose of construing subsection (5) above—
(a)what of the gain has been charged shall be found in accordance with what is just and reasonable;
(b)section 37(8) and (9) above shall apply.
(7)In a case where—
(a)section 38 above applies in the case of bonds,
(b)subsequently a disposal of the bonds occurs as mentioned in paragraph 10(1)(b) of Schedule 13 to the [1984 c. 43.] Finance Act 1984, and
(c)a chargeable gain is deemed to accrue under paragraph 10(1)(b),
the chargeable gain shall be reduced by the relevant amount found under section 38 above or (if the amount exceeds the gain) shall be reduced to nil.
(8)The relevant amount shall be apportioned where the subsequent disposal is of some of the bonds mentioned in subsection (7)(a) above; and subsection (7) shall apply accordingly.
(9)In this section “the 1979 Act” means the [1979 c. 14.] Capital Gains Tax Act 1979.”