SCHEDULES
SCHEDULE 2Taxation provisions relating to re-structuring etc
Transfer of securities of subsidiaries of original holding company to Crown etc
I11
1
This paragraph applies where—
a
there is a disposal of securities of a subsidiary of the original holding company to the Secretary of State or the Treasury (or a nominee of either of them) or to a company wholly owned by the Crown, and
b
immediately before the disposal, the subsidiary was wholly owned by the original holding company.
2
For the purposes of the Taxation of Chargeable Gains Act 1992 the disposal is to be treated in relation to—
a
the person making the disposal, and
b
the person to whom the disposal is made,
as made for a consideration such that no gain or loss accrues to the person making the disposal.
3
The degrouping provisions are not to apply by reason of the disposal or any agreement to make the disposal (if they otherwise would).
4
In this Schedule a “degrouping provision” means—
a
section 179 of the Taxation of Chargeable Gains Act 1992 (company ceasing to be member of group), or
b
paragraph 3 of Schedule 7 to the Finance Act 2003 (withdrawal of SDLT group relief).
5
Stamp duty is not chargeable on the instrument effecting the disposal.
6
This paragraph applies whether or not the disposal is made by or under a transfer scheme under section 8.