Finance Act 2006

Valid from 19/07/2007

[F1 Demergers U.K.

Textual Amendments

F1 Sch. 17 para. 34 and preceding cross-heading inserted (with effect as mentioned in s. 52(2) of the amending Act) by Finance Act 2007 (c. 11), s. 52, Sch. 17 para. 16(6)

34 (1) This paragraph applies in relation to a company if— U.K.

(a) the company ceases to be a member of a group (“Group 1”) to which Part 4 applies,

(b) at the time immediately after it ceases to be a member of Group 1, either—

(i) it satisfies Conditions 1 and 2 of section 106 and the conditions specified in sections 107 and 108, or

(ii) it is a member of another group (“Group 2”) which satisfies those conditions as modified by the provisions of paragraphs 5 to 7 above,

(c) the company (or the principal company of Group 2) gives a notice under section 109 (or that section as modified by paragraph 8 above) no later than the date on which it ceases to be a member of Group 1, and

(d) the notice specifies an accounting period which begins on the day on which the company ceases to be a member of Group 1.

(2) A company may give a notice under section 109 (or that section as modified by paragraph 8 above) in accordance with sub-paragraph (1)(c) even if it does not expect to satisfy Conditions 3 to 6 of section 106 throughout the accounting period specified in the notice.

(3) Where this paragraph applies, the company shall be treated as a company to which Part 4 applies (or as a member of a group to which Part 4 applies) during the period of six months beginning with the time when it ceases to be a member of Group 1.

(4) Where this paragraph applies, the following provisions of Part 4 shall not have effect—

(a) section 111 (or that section as modified by paragraphs 9 and 10 above),

(b) section 112 (or that section as modified by paragraph 11 above), and

(c) section 131 (as modified by paragraphs 25 and 26 above).

(5) But if, at the end of the period of six months mentioned in sub-paragraph (3), Conditions 3 to 6 of section 106 are not satisfied in relation to the company, this paragraph shall not have effect and the company shall be treated as having ceased to be a company to which Part 4 applies (or a member of a group to which Part 4 applies) on the date on which it ceased to be a member of Group 1.]