Finance Act 2009

6 (1) Section 196 (interpretation of sections 194 and 195) is amended as follows. U.K.

(2) In the heading, for “and 195” substitute “ to 195E ”.

(3) In subsection (1), after “section 194” insert “ and this section ”.

(4) After subsection (1A) insert—

“(1B) In sections 195A to 195E, a reference to a UK licence that relates to a developed area is a reference to any UK licence apart from one that relates to an undeveloped area.”

(5) In subsection (2), for “and (1A)” substitute “ to (1B) ”.

(6) In subsection (3), after “(1)” insert “ or (1B) ”.

(7) In subsection (5)—

(a) for “and 195” substitute “ to 195E ”,

(b) after the definition of “licence” insert—

““licence-consideration swap” has the meaning given in section 195A(2);”, and

(c) after the definition of “licensee” insert—

““mixed consideration” means consideration that consists partly of disposal of a UK licence;

“mixed-consideration swap” has the meaning given in section 195A(2);

“no gain/no loss amount”, in relation to a company that disposes of a UK licence, means the amount that would be taken to be the consideration for the disposal if section 56(2) applied to the disposal;

“non-licence consideration” means consideration that does not consist of disposal of a UK licence, as determined at the time the swap arrangements are entered into;

“swap arrangements”, in relation to a licence-consideration swap or a mixed-consideration swap, means the arrangements under which the swap takes place;”.

(8) After subsection (5A) insert—

“(5B) In any of sections 195B to 195E, a reference to the value of a licence comprised in disposal A or disposal B (see section 195A) is a reference to the value of the licence as determined under the swap arrangements at the time the swap arrangements are entered into.”