786. Exempt assets.

The following assets are exempt for CGT purposes; no chargeable gain arises on the disposal of them and no relief is given for any loss arising:

  1.  

    (1)     debts other than the debt on a security1;

  2.  

    (2)     covenants2;

  3.  

    (3)     certain tangible movable property that are wasting assets