Section 56A | Effect on sections 55 and 56 of relief under Finance Act 1980, section 79. ^F1

(1)This section applies where—

(a)a claim for relief was made under section 126 or 147A below in respect of the disposal of an asset to a trustee, and^F2

(b)the trustee is deemed to have disposed of the asset, or part of it, by virtue of section 54(1) or 55(1)(a) above.

(2)Sections 56(1)(a) and 55(1)(b) shall not apply to the disposal of the asset or part by the trustee, but any chargeable gain accruing to the trustee on the disposal shall be restricted to the amount of the held-over gain (or a corresponding part of it) on the disposal of the asset to him.

(3)Subsection (2) above shall not have effect in a case within section 56(1A) above; but in such a case the reduction provided for by section 56(1A) above shall be diminished by an amount equal to the proportion there mentioned of the held-over gain.

(4)In this section “held-over gain” has the same meaning as in section 126 or, as the case may be, 147A below.^F2