Finance Act 2006

Yn ddilys o 19/07/2006

132Early exit by noticeU.K.

(1)This section applies where this Part—

(a)ceases to apply to a company by reason of section 128, and

(b)had applied to the company for a continuous period immediately before cessation of less than ten years.

(2)If the company disposes of a tax-exempt asset during the post-cessation period, liability to corporation tax shall be determined without regard to—

(a)any deemed disposal under section 111(2) that resulted in a gain,

(b)any deemed disposal under section 131(3), or

(c)any deemed disposal under section 125(2).

(3)In subsection (2)—

(a)“tax-exempt asset” means an asset that was involved (within the meaning of section 107(6)(a)) in the business of C (tax-exempt), and

(b)“the post-cessation period” means the period of two years beginning with the date of cessation.

Modifications etc. (not altering text)