Negativity

I should be very grateful for readers’ comments on the following proposition. Ignoring the straight-line restriction of allowable expenditure on wasting assets chargeable gains and allowable losses crystallised on arm’s length disposals of capital assets must always be calculated as the sum of P – (P1 + C + C1 + E + IA) where these terms are defined as follows.

P The actual consideration for the disposal whether the amount is paid to or by the transferor.
P1 Incidental costs of disposal.
C Consideration for acquisition.
C1 Incidental costs of acquisition.
E Expenditure on enhancement reflected in the state or nature of the asset at disposal.
IA Indexation allowance (if applicable).

In other words if the consideration is paid by the transferor to the transferee of an asset then the “P amount” above will be negative.

This is a straightforward purposive interpretation of the law consistent with the...