Capital gains reinvested in replacement assets are deemed applied to charitable or religious purposes, enabling tax treatment on reinvestment. Capital gains on transfer of trust property held wholly or partly for charitable or religious purposes are deemed applied to those purposes when the net consideration is used to acquire a replacement asset for like purposes. If the whole net consideration is reinvested, the whole gain or whole appropriate fraction is deemed applied; if only part is reinvested, deemed application equals the gain (or appropriate fraction) corresponding to the excess of the amount utilised over the cost (or appropriate fraction of the cost). Definitions specify 'appropriate fraction', 'cost of the transferred asset' and 'net consideration.'