Commentary

C2.209 Assets derived from other assets

Capital gains tax
Capital gains tax | Commentary

C2.209 Assets derived from other assets

Capital gains tax | Commentary

C2.209 Assets derived from other assets

Where an asset is derived from any other asset in the same ownership, the costs of acquiring, providing and improving the asset first owned are divided between the separate assets. The method of division is by attributing an appropriate proportion of the deductions allowable to each asset in question1. The precise method of apportionment should be made on a just and reasonable basis2. It is made by the taxpayer in preparing his self-assessment return3.

Where one asset is merged with another, or rights or interests in or over assets have been created or extinguished, an

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