Section 41

Any incidental cost incurred wholly and exclusively for the purpose
incurred for
of disposal of a chargeable asset is deductible from the disposal proceeds for
disposal of
the purposes of determining the chargeable gain. chargeable
assets
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Part disposal 41. (1) Where a part of an asset is disposed or where some property
derived from an asset remains undisposed after a disposal of the asset –
(a) the acquisition cost of the assets, together with any expenditure wholly
and exclusively incurred for the purpose of enhancing the value of the asset;
or
First (b) the residue, in the case of assets used for trade or business on which
Schedule capital allowance have been made in accordance with the First Schedule to
this Act,
shall be apportioned between the disposed part and the undisposed part.
(2) Apportionment shall be made by reference to –
(a) the amount or value of the consideration for the disposal on the one
hand, referred to as "A"; and
(b) the market value of the property which remains undisposed on the
other hand referred to as "B".
(3) The acquisition cost or residue of the disposed part shall be apportioned
by applying the fraction A/(A+B), and the remainder shall be attributed to the
part which remains undisposed.
(4) Where a portion of interest or right in a chargeable asset is disposed,
and some part of that asset or any description of property derived from the
asset remains undisposed, the cost of acquisition in addition to any incidental
cost of the acquisition, or residue of the asset, shall be apportioned based on
the value of the sale compared to the market value of the undisposed portion.
Consider- 42. (1) Where the consideration or part of a consideration, taken into
ation due account in the computation of chargeable gains under section 39 of this Act, is
after time of payable by instalments over a period exceeding twelve months, beginning from
disposal
the time when the disposal is made, the chargeable gain accruing on the dis-
posal shall be regarded as accruing in proportionate parts in the period of
assessment in which the disposal is made and in subsequent periods of assess-
ments, until the last instalment is payable.
(2) The proportionate parts to be recorded as accruing in the respective
periods of assessment shall correspond to the proportions of the amounts of
the instalments of consideration payable in those respective periods of
assessment.
(3) The time in the year or accounting period when any part of a
chargeable gain is deemed to accrue under this section shall be the last day in
that year of assessment, except in the case of cessation of a trade, business,
profession or vocation, or death of the alienator, where such part shall be
deemed to accrue on the date of cessation or death.
(4) The provisions of subsection (1) shall not apply to any part of the
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consideration which has effectively passed to the person making the disposal
by way of a loan made to that person by the other party to the transaction.
(5) In the computation of chargeable gains under this section –
(a) consideration for the disposal shall, in the first instance, be brought
into account without –
(i) any adjustment for postponement of the right to receive any part of
it, and
(ii) regard to a risk of any part of the consideration being irrecover-
able, or to the right to receive any part of the consideration being contingent;
and
(b) where any part of the consideration so brought into account is
subsequently shown to the satisfaction of the relevant tax authority to be
irrecoverable, such adjustment, whether by way of discharge, or repayment
of tax or otherwise, shall be made as required.