[F1Transfers of allowance on disposal of equity shareU.K.
Textual Amendments
F1Pt. 8 Ch. 8 inserted (with effect in accordance with Sch. 15 paras. 6(1), 9(2) of the amending Act) by Finance Act 2014 (c. 26), Sch. 15 para. 3
356HIntroduction to sections 356HA and 356HBU.K.
(1)Sections 356HA and 356HB apply where a company (“the transferor”)—
(a)disposes of the whole or part of its share of the equity in a licensed area that is or contains a site;
(b)immediately before the disposal holds (unactivated) onshore allowance for the site concerned.
(2)Each company to which a share of the equity is disposed of is referred to in section 356HB as “a transferee”.
356HAReduction of allowance if equity disposed ofU.K.
(1)The following amount is to be deducted, in accordance with section 356GD(1), in calculating the total amount of unactivated allowance attributable to a reference period and a site—
where—
F is the pre-transfer total of unactivated allowance for the reference period that ends with the day on which the disposal is made;
E1 is the transferor's share of the equity in the licensed area immediately before the disposal;
E2 is the transferor's share of the equity in the licensed area immediately after the disposal.
(2)The “pre-transfer total of unactivated allowance” for a reference period is—
where P and Q are the same as in section 356GD.
356HBAcquisition of allowance if equity acquiredU.K.
(1)A transferee is treated as generating at the site concerned, at the beginning of the reference period or accounting period of the transferee that begins with, or because of, the disposal, onshore allowance of the amount given by subsection (2).
(2)The amount is—
where—
R is the amount determined for the purposes of the deduction under section 356HA(1);
E3 is the share of equity in the licensed area that the transferee has acquired from the transferor;
E1 and E2 are the same as in section 356HA.]