(1) Subject to paragraph 7, a disposal to which Chapter 2 of Part 27 applies by virtue of section 742(3) shall give rise to an offshore income gain of an amount equal to the equalisation element relevant to the asset disposed of.
(2) Subject to subparagraphs (4) to (6), the equalisation element relevant to the asset disposed of by a disposal within subparagraph (1) shall be the amount which would be credited to the equalisation account of the offshore fund concerned in respect of accrued income if, on the date of the disposal, the asset disposed of were acquired by another person by means of initial purchase.
(3) In the following provisions of this Part of this Schedule, a disposal within subparagraph (1) is referred to as a "disposal involving an equalisation element".
(4) Where the asset disposed of by a disposal involving an equalisation element was acquired by the person making the disposal after the beginning of the period by reference to which the accrued income r
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