Textual Amendments
F1Sch. 7AA inserted (with effect in accordance with s. 137(5) of the amending Act) by Finance Act 1998 (c. 36), s. 137(2), Sch. 24
6(1)This paragraph applies in relation to any allowable loss accruing to the relevant company in the gain period on the disposal of the whole or any part of an asset if—U.K.
(a)the asset is one falling within sub-paragraph (2) below;
(b)the disposal is one made at or at any time after an entry time; and
(c)the loss is not one in relation to which paragraph 5(2) above applies.
(2)An asset falls within this sub-paragraph if it is—
(a)an asset treated as a single asset but comprising assets only some of which were held immediately before the entry time by the relevant company or by an associated company; or
(b)an asset which is treated as held immediately before the entry time by the relevant company or by an associated company by virtue of a provision requiring an asset which was not held immediately before that time to be treated as the same as an asset which was so held.
(3)Only such proportions of the loss as fall within sub-paragraph (4) below shall be taken for the purposes of paragraph 4(4) above to have accrued on the disposal of an asset held at the entry time.
(4)Those proportions are—
(a)the proportion of the loss which, on a just and reasonable apportionment, is properly attributable to assets in fact held at the entry time; and
(b)such proportion of the loss not falling within paragraph (a) above as represents the loss that would have accrued if the asset disposed of had been the asset in fact held at that time.
(5)In this paragraph—
“associated company”, in relation to any entry time, means a company which—
at that time joined the group of companies that was also joined at that time by the relevant company; and
had been a member of the same group of companies as the relevant company immediately before that time;
“entry time” means any time in the gain period at which the relevant company joins a group of companies.]