Section 737 | Apportionment in case of part realisation

From legislation.gov.uk

(1)In the case of a part realisation—

(a)the references in section 735 to the tax written-down value of the asset, and

(b)the references in section 736 to the cost of the asset,

must be read as references to the appropriate proportion of that amount.

(2)That proportion is—

Formula

\frac{AVB - AVA}{AVB}

where—

AVB is the accounting value immediately before the realisation, and

AVA is the accounting value immediately after the realisation.