[F15(1)There is a disposal of the single asset on each occasion on which the company receives a distribution from the partnership that does not consist entirely of income or the proceeds of sale or redemption of assets that are not relevant assets.U.K.
(2)The disposal is taken to be for a consideration equal to the amount of the distribution or of so much of it as does not consist of income or the proceeds of sale or redemption of assets that are not relevant assets.
(3)Where—
(a)the partnership disposes of relevant assets on which a chargeable gain or allowable loss would accrue if they were held by the company alone, and
(b)no distribution of the proceeds of the disposal is made within twelve months of the disposal,
the company is treated as having received its share of the proceeds as a distribution at the end of the period of account of the partnership following that in which the disposal took place, or at the end of the period of six months after the date of the disposal, whichever is the later.
(4)The operation of sub-paragraph (3) is not affected by the partnership having ceased to be a venture capital investment partnership before the time at which the distribution is treated as received by the company.
(5)Where sub-paragraph (3) applies, any subsequent actual distribution of the proceeds is disregarded.]
Textual Amendments
F1Sch. 7AD inserted (24.7.2002) by Finance Act 2002 (c. 23), s. 85(2), Sch. 31