# Finance Act 1974, Paragraph 5


(1) In computing under this Chapter any gain accruing to a person on a disposal of a lease which is a wasting asset, the current use value of the lease at the time of its acquisition by the person making the disposal shall be the relevant fraction of what its current use value at that time would be apart from this paragraph.
(2) For the purposes of the preceding sub-paragraph “the relevant fraction”means the fraction of which the numerator is equal to so much of the expenditure attributable to the lease under [ section 32(1)(a) and (b) of the Capital Gains Tax Act 1979 ] as is not under paragraph 1 of [ Schedule 3 ] to that Act excluded therefrom for the purposes of the computation under [ Chapter II of Part II of that Act] of the gain accruing on the disposal, and the denominator is equal to the whole of the expenditure which would be so attributable to the lease for those purposes apart from the said paragraph 1.

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Source: https://www.legislation.gov.uk/ukpga/1974/30/schedule/3/paragraph/5 (the official version)
Page: https://openlegislation.uk/finance-act-1974/schedule-3/paragraph-5
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.