SCHEDULES
C1SCHEDULE 18M1 GROUP RELIEF: EQUITY HOLDERS AND PROFITS OR ASSETS AVAILABLE FOR DISTRIBUTION F1
Sch. 18 applied (E.W.S) (16.1.1992) by S.I. 1992/58, art. 35(5)
Sch. 18 applied (with modifications) (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 170(8), 289 (with ss. 60, 101(1), 171, 201(3))
Sch. 18 applied (with modifications) (6.3.1992 with effect as mentioned in s. 289(1)(2) of the amending Act) by Taxation of Chargeable Gains Act 1992 (c. 12), ss. 228(10), 289 (with ss. 60, 101(1), 171, 201(3))
Source—1973 Sch. 12 Pt. I; 1973 s. 32(6); 1987 Sch. 15 5
F25C
1
In a case where paragraphs 4 and 5B above apply, each of the following percentages, namely—
a
the percentage of profits to which, on the profit distribution, the first company referred to in paragraph 2(1) above would be entitled, and
b
the percentage of assets to which, on the notional winding-up, the first company referred to in paragraph 3(1) above would be entitled,
shall be determined on each of the different bases set out in sub-paragraph (2) below.
2
The bases are—
a
the basis specified in paragraph 4(2) above;
b
the basis specified in paragraph 5B(8) above;
c
the basis specified in paragraph 4(2) above and the basis specified in paragraph 5B(8) above taken together;
d
the basis specified in paragraph 2(1) or 3(1) above (according to the percentage concerned) without regard to paragraphs 4(2) and 5B(8) above.
3
The lowest of the four percentages of profits so determined shall be taken for the purposes of F3sections 403C and 413(7) to be the percentage of profits to which, on the profit distribution, the first company referred to in paragraph 2(1) above would be entitled as mentioned in that paragraph.
4
The lowest of the four percentages of assets so determined shall be taken for the purposes of F3sections 403C and 413(7) to be the percentage to which, on the notional winding-up, the first company mentioned in paragraph 3(1) above would be entitled of any assets of the other company available for distribution to its equity holders on a winding-up.
5
For the purposes of this paragraph the basis specified in paragraph 5B(8) above is such basis as gives the percentage of profits arrived at by virtue of paragraph 5B(9) above or (as the case may be) such basis as gives the percentage of assets arrived at by virtue of paragraph 5B(9) above.
See—s.240(13)—application of Sch.18for purposes of s.240—set-off of surplus ACT.s.247(9A)—application of Sch.18for purposes of.s.247(8A), (9)(c)—dividends etc. paid by one member of a group to another.s.769(6C)—application of Sch.18for purposes of.s.769(6B)—rules for ascertaining change in ownership of company.1990 s.32(12)—application of Sch.18for relief for disposal of shares to employee share ownership trusts.