Finance Act 2006

Yn ddilys o 19/07/2006

132 Early exit by notice U.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)

C1 S. 132(2)(3) applied (with modifications) (31.12.2007) by The Real Estate Investment Trusts (Joint Venture Groups) Regulations 2007 (S.I. 2007/3425), reg. 16

S. 132(2)(3) applied (with modifications) (31.12.2007) by The Real Estate Investment Trusts (Joint Venture Groups) Regulations 2007 (S.I. 2007/3425), reg. 26