SCHEDULES
F1SCHEDULE 18
Part I
1–8F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part II Relief From Tax in Respect of Capital Gains
9
Where a company makes an exempt distribution which falls within F3Section 213(3)(a) of the Taxes Act 1988
a
the distribution shall not be a capital distribution for the purposes of section 72 of the Capital Gains Tax Act 1979 (disposal on receipt of capital distribution); and
b
sections 77 to 81 of that Act shall, with the necessary modifications, apply as if that company and the subsidiary whose shares are transferred were the same company and the distribution were a reorganisation of its share capital.
10
Subject to paragraph 15 below, neither section 278 nor section 279 of the Taxes Act (charge of tax where company ceases to be a member of a group) shall apply in a case where a company ceases to be a member of a group by reason only of an exempt distribution.
Part III Relief From Development Land Tax
11
Subject to paragraph 16 below, section 21 of the M1Development Land Tax Act 1976 (chargeable disposal where company ceases to be a member of a group) shall not apply where a company ceases to be a member of a group by reason only of an exempt distribution.
Part IV
12
1
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F4
2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F5
Part V Prevention of Tax Avoidance
13F6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Re-instatement of charge in respect of capital gains
15
Paragraph 10 above does not apply if within five years after the making of the exempt distribution there is chargeable payment; and the time for making an assessment under section 278 or 279 of the Taxes Act by virtue of this paragraph shall not expire before the end of three years after the making of the chargeable payment.
Re-instatement of development land tax charge
16
Paragraph 11 above does not apply if within five years after the making of the exempt distribution there is a chargeable payment; and the time for making an assessment under section 21 of the M2Development Land Tax Act 1976 by virtue of this paragraph shall not expire before the end of three years after the making of the chargeable payment.
Part VI
17–22F7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Part VII Interpretation
23
1
In this Schedule—
“chargeable payment” has the meaning given in F8Section 214(2) of the Taxes Act 1988;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F9
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F9
“exempt distribution” means a distribution which is exempt by virtue of F8Section 213(2) of that Act;
“group”, F10, means a company which has one or more 75 per cent. subsidiaries together with that or those subsidiaries F11;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F12
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F12
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F12
“shares” includes stock;
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F12
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F12
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F12
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F12
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F12
2
In determining for the purposes of paragraphs 2 to 6 above whether a company whose shares are transferred by the distributing company is a 75 per cent. subsidiary of the distributing company there shall be disregarded any share capital of the first-mentioned company which is owned indirectly by the distributing company.
3
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F13
4
Section 533 of the Taxes Act (meaning of connected persons) applies for the purposes of this Schedule.
5
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F13
Sch. 18 repealed (6.3.1992 with effect as mentioned in s. 289(1)(2) of the repealing Act) by Taxation of Chargeable Gains Act 1992 (c. 12), s. 290, Sch.12 (with ss. 60, 101(1), 201(3), Sch. 11 paras. 22, 26(2), 27).