3Section 273 shall apply for the purposes of determining the [1973 c. 51.] market value of any asset at any time before 6th July 1973 (the date when the provisions of section 51(1) to (3) of the Finance Act 1973, which are now contained in section 273, came into force) notwithstanding that the asset was acquired before that date or that the market value of the asset may have been fixed for the purposes of a contemporaneous disposal, and in paragraphs 4 and 5 below a “section 273 asset” is an asset to which section 273 applies.
4(1)This paragraph applies if, in a case where the market value of a section 273 asset at the time of its acquisition is material to the computation of any chargeable gain under this Act—
(a)the acquisition took place on the occasion of a death occurring after 30th March 1971 and before 6th July 1973, and
(b)by virtue of paragraph 9 below, the principal value of the asset for the purposes of estate duty on that death would, apart from this paragraph, be taken to be the market value of the asset at the date of the death for the purposes of this Act.
(2)If the principal value referred to in sub-paragraph (1)(b) above falls to be determined as mentioned in section 55 of the [1940 c. 29.] Finance Act 1940 or section 15 of the [1946 c. 17 (N.I.).] Finance (No.2) Act (Northern Ireland) 1946 (certain controlling shareholdings to be valued on an assets basis), nothing in section 273 shall affect the operation of paragraph 9 below for the purpose of determining the market value of the asset at the date of the death.
(3)If sub-paragraph (2) above does not apply, paragraph 9 below shall not apply as mentioned in sub-paragraph (1)(b) above and the market value of the asset on its acquisition at the date of the death shall be determined in accordance with sections 272 (but with the same modifications as are made by paragraphs 7 and 8 below) and 273.
5(1)In any case where—
(a)before 6th July 1973 there has been a part disposal of a section 273 asset (“the earlier disposal”), and
(b)by virtue of any enactment, the acquisition of the asset or any part of it was deemed to be for a consideration equal to its market value, and
(c)on or after 6th July 1973 there is a disposal (including a part disposal) of the property which remained undisposed of immediately before that date (“the later disposal”),
sub-paragraph (2) below shall apply in computing any chargeable gain accruing on the later disposal.
(2)Where this sub-paragraph applies, the apportionment made by virtue of paragraph 7 of Schedule 6 to the [1965 c. 25.] Finance Act 1965 (corresponding to section 42 of this Act) on the occasion of the earlier disposal shall be recalculated on the basis that section 273(3) of this Act was in force at the time and applied for the purposes of the determination of—
(a)the market value referred to in sub-paragraph (1)(b) above, and
(b)the market value of the property which remained undisposed of after the earlier disposal, and
(c)if the consideration for the earlier disposal was, by virtue of any enactment, deemed to be equal to the market value of the property disposed of, that market value.