D2.444 General calculation—Assumed order of disposal
The rules in this article were repealed in relation to the set off of pre-entry losses on or after 19 July 2011, subject to transitional rules (see D2.414). Prior to 19 July 2011, the rules in this article applied only where the loss buying rules (D2.402–D2.406) did not apply (ie where there was no arrangement for avoiding tax, eg on a merger or takeover).
When the pre-entry part of a pooled asset is to be treated as a separate asset (D2.442) it is assumed that, for the purposes of determining the pre-entry proportion, the assets have never been pooled with any other different assets1.
In addition, specific rules detail the order in which such pooled assets are deemed to be disposed of. This is necessary in order to identify the remaining assets for the purposes of determining the pre-entry proportion. Under these provisions, it is assumed that2:
(a) assets are disposed of in the order of the pre-entry dates applicable to the consideration for their acquisition. For these purposes, the pre-entry