Finance Act 2006

Capital gainsU.K.

21(1)Sections 124 to 126 shall apply only in relation to each UK resident company which is a member of the group; for which purpose—U.K.

(a)a reference to C (tax-exempt) is a reference to the company if or in so far as it is a member of G (property rental business), and

(b)a reference to C (residual) is a reference to the company if or in so far as it is a member of G (residual).

(2)Where a percentage of the gains of a member of G (property rental business) is excluded from a financial statement in accordance with paragraph 31(5), the excluded percentage shall be treated for the purposes of corporation tax as gains of the member in so far as it is a member of G (residual).

22U.K.In the application of section 125(7) a reference to the company shall be treated as a reference to a member of the group.