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Part disposal before 7 April 1965

Although no chargeable gains or allowable losses arise in respect of disposals before 7 April 1965, the capital gains provisions apply to such disposals to the extent that they affect the computation of gains on disposals occurring on or after that date¹. In the case of part disposals (see Division C2.4), however, the normal rule for determining allowable expenditure is modified in the case of assets held at 6 April 1965 if there was a part disposal of the asset before that date. Instead of computing the notional allowable expenditure on the earlier part disposal, the asset remaining is deemed to have been disposed of and immediately reacquired at its market value on the date of the earlier part disposal². This means that the period of ownership for the purposes of any time apportionment calculation begins with the date of the