In section 273 of the Taxes Act 1970 (which treats certain intra-group transactions as producing neither a gain nor a loss) after subsection (2) there shall be inserted—

“(2A)

Subsection (1) above shall not apply to a transaction treated by virtue of sections 78 and 85 of the M1Capital Gains Tax Act 1979 as not involving a disposal by the company first mentioned in that subsection.”