Section 164A of the Taxation of Chargeable Gains Act 1992 (re-investment relief) shall have effect, and be deemed always to have had effect, as if the following subsections were inserted after subsection (2)—
“(2A)Where the chargeable gain referred to in subsection (1)(a) above is one which (apart from this section) would be deemed to accrue by virtue of section 116(10)(b)—
(a)any reduction falling to be made by virtue of subsection (2)(a) above shall be treated as one made in the consideration mentioned in section 116(10)(a), instead of in the consideration for the disposal of the asset disposed of; but
(b)if the disposal on which that gain is deemed to accrue is a disposal of only part of the new asset, it shall be assumed, for the purpose only of making a reduction affecting the amount of that gain—
(i)that the disposal is a disposal of the whole of a new asset,
(ii)that the gain accruing on that disposal relates to an old asset consisting in the corresponding part of what was in fact the old asset, and
(iii)that the corresponding part of the consideration deemed to be given for what was in fact the old asset is taken to be the consideration by reference to which the amount of that gain is computed;
and in this subsection “new asset” and “old asset” have the same meanings as in section 116.
(2B)Where a chargeable gain accrues in accordance with subsection (12) of section 116, this Chapter shall have effect—
(a)as if that gain were a gain accruing on the disposal of an asset; and
(b)in relation to that deemed disposal, as if references in this Chapter to the consideration for the disposal were references to the sum of money falling, apart from this Chapter, to be used in computing the gain accruing under that subsection.”