Assets may change their nature or be divided or merged. Furthermore assets may represent interests or rights which have been created or extinguished over other assets. In these circumstances, 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 basis and be made by the taxpayer in preparing their self-assessment return2. The likely practical application of these provisions are where separate assets have been assembled
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