PART IV CLOSE COMPANIES
Transfers by close companies
C197 Transfers within group, etc.
1
Where a close company (“the transferor company”) is a member, but not the principal F1company, of a group and—
a
a disposal by the transferor company of any asset is a disposal to which section F2171(1) of the 1992 Act applies and is also a transfer of value, and
b
the transfer of value has only a small effect on the value of the minority participators’ rights and interests in that company compared with its effect on the value of the other participators’ rights and interests in the company,
the rights and interests of the minority participators shall be left out of account in determining the respective rights and interests of the transferor company’s participators for the purpose of apportioning the value transferred under section 94 above.
2
For the purposes of subsection (1) above—
a
b
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