Finance Act 1994

11 (1) In this paragraph, “relevant disposal” means—

(a) a disposal by virtue of a section 85 transfer scheme, other than a restructuring scheme, to the extent that the scheme provides for the transfer of property, rights and liabilities of—

(i) the Board,

(ii) a wholly owned subsidiary of the Board,

(iii) a publicly owned railway company, or

(iv) a company which is wholly owned by the Franchising Director,

to a franchise company or to the Franchising Director;

(b) a disposal pursuant to a direction under section 88(6) or (7) or 89 of the [1993 c. 43.] Railways Act 1993;

(c) a disposal by or pursuant to an agreement or instrument made or executed, transaction effected or direction given under or by virtue of paragraph 2, 3 or 14(2) of Schedule 8 to that Act, in a case where the transfer scheme in question is a section 85 transfer scheme, other than a restructuring scheme; or

(d) a disposal pursuant to a requirement imposed under paragraph 7(2)(b) of that Schedule, in a case where the transfer to which that Schedule applies is a transfer by virtue of a section 85 transfer scheme.

(2) Subject to sub-paragraph (3) below, section 17 of the Gains Act (disposals and acquisitions treated as made at market value) shall not have effect—

(a) in relation to a relevant disposal or the corresponding acquisition,

(b) in relation to an acquisition by a franchise company, in a case where the corresponding disposal is a disposal by the Franchising Director by virtue of a section 85 transfer scheme, or

(c) in relation to a disposal of a historical record or artefact in accordance with directions under section 125 of the [1993 c. 43.] Railways Act 1993 (railway heritage),

unless, in a case falling within paragraph (a) or (b) above, the person making the disposal is connected with the person making the acquisition.

(3) Where there is a relevant disposal of an asset of—

(a) the Board,

(b) a subsidiary of the Board,

(c) a publicly owned railway company, or

(d) a company wholly owned by the Franchising Director,

to the Franchising Director or a company wholly owned by the Crown, the disposal shall be taken for the purposes of the Gains Act, in relation to the person making the disposal and, if the disposal is made to a company wholly owned by the Crown, the person to whom the disposal is made, to be for a consideration such that no gain or loss accrues on the disposal.

(4) Where there is a disposal of a historical record or artefact in accordance with directions under section 125 of the [1993 c. 43.] Railways Act 1993 and the disposal is either—

(a) for a consideration not exceeding the sums which are allowable as a deduction under section 38 of the Gains Act (consideration for, and incidental costs of, original acquisition etc), or

(b) for no consideration,

the disposal shall be taken for the purposes of the Gains Act, in relation to the person to whom the disposal is made as well as the person making the disposal, to be for a consideration such that no gain or loss accrues on the disposal.

(5) In this paragraph—

• “the corresponding acquisition”, in the case of any disposal, means the acquisition made by the person to whom the disposal is made;

• “the corresponding disposal” in the case of any acquisition, means the disposal to the person by whom the acquisition is made.