4(1)Where—U.K.
(a)in accordance with an approved scheme, shares in a subsidiary of the relevant board (“the transferred company”) are transferred otherwise than under section 11 above to a qualifying body (“the successor”),
(b)immediately after the transfer, the successor is a member of a group of which the relevant board is a member, and
(c)the scheme provides as mentioned in paragraph 3(1)(b) above,
sections 178 and 179 of the M1Taxation of Chargeable Gains Act 1992 shall not apply on the transferred company ceasing to be a member of a group of which the relevant board is a member if, immediately after doing so, it is a member of a group of which the successor is a member.
(2)Where by virtue of sub-paragraph (1) above sections 178 and 179 of the Taxation of Chargeable Gains Act 1992 do not apply, then, on the transferred company ceasing to be a member of a group of which the successor is a member, those sections shall apply—
(a)as if any assets acquired by the transferred company, at any time when it was a member of a group of which the relevant board was a member, from any member of that group had been acquired by it at that time from the successor, and
(b)as if the transferred company and the successor had at all material times been associated companies for the purposes of those sections.
(3)In this paragraph—
“group” has the meaning given by section 170 of the Taxation of Chargeable Gains Act 1992; and
“relevant board” means the board to which the scheme relates.
Marginal Citations