(1) This section shall apply where a company ceases to be a tonnage tax company -
(a) on ceasing to be a qualifying company for reasons relating wholly or mainly to tax, or
(b) under section 697F.
(2) Where this section applies, section 697N shall apply in relation to chargeable gains (within the meaning of the Capital Gains Tax Acts), but not losses, on all relevant disposals as if the company had never been a tonnage tax company and for this purpose a 'relevant disposal' means a disposal -
(a) on or after the day on which the company ceases to be a tonnage tax company, or
(b) at any time during the period of 6 years immediately preceding that day when the company was a tonnage tax company.
(3) Where subsection (2) operates to increase the amount of the chargeable gain on a disposal made at a time within the period mentioned in subparagraph (2)(b), the gain is treated to the extent of the increase -
(a) as arising immediately before the company ceased to be a tonnage tax company, and
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