# Capital Gains Tax Act 1979 (repealed 6.3.1992), Paragraph 6

Extent: E+W+S+N.I.

(1) If under section 37(4) of the Taxes Act 1988 (allowance where, by the grant of a sub-lease, a lessee has converted a capital amount into a right to income) a person is to be treated as paying additional rent in consequence of having granted a sub-lease, the amount of any loss accruing to him on the disposal by way of the grant of the sub-lease shall be reduced by the total amount of rent which he is thereby treated as paying over the term of the sub-lease (and without regard to whether relief is thereby effectively given over the term of the sub-lease), but not so as to convert the loss into a gain, or to increase any gain.
(2) Nothing in section 31 of this Act shall be taken as applying in relation to any amount on which tax is paid under section 35 of the Taxes Act 1988 (charge on assignment of lease granted at undervalue).
(3) If any adjustment is made under section 36(2)(b) of the Taxes Act 1988 on a claim under that paragraph, any necessary adjustment shall be made to give effect to the consequences of the claim on the operation of this paragraph or paragraph 5 above.

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Source: https://www.legislation.gov.uk/ukpga/1979/14/schedule/3/paragraph/6 (the official version)
Page: https://openlegislation.uk/capital-gains-tax-act-1979-repealed-631992/schedule-3/paragraph-6
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.