Textual Amendments
F1Ss. 14B-14H and cross-heading inserted (with effect in accordance with Sch. 7 para. 60 of the amending Act) by Finance Act 2015 (c. 11), Sch. 7 para. 11
(1)This section applies where a company which makes a non-resident CGT disposal—
(a)is a divided company, and
(b)would, without this section, be an eligible person for the purposes of section 14F in relation to the disposal.
(2)In determining for the purposes of section 14F whether or not the company is an eligible company in relation to the disposal, the company is to be treated as if it were a closely-held company if the conditions in subsection (3) are met.
(3)The conditions are that—
(a)the gain or loss accruing on the disposal is primarily or wholly attributable to a particular division of the company, and
(b)if that division were a separate company, that separate company would be a closely-held company.
(4)For the purposes of this section a company is a “divided company” if, under the law under which the company is formed, under the company's articles of association or other document regulating the company or under arrangements entered into by or in relation to the company—
(a)some or all of the assets of the company are available primarily, or only, to meet particular liabilities of the company, and
(b)some or all of the members of the company, and some or all of its creditors, have rights primarily, or only, in relation to particular assets of the company.
(5)References in this section to a “division” of a divided company are to an identifiable part of the company that carries on distinct business activities and to which particular assets and liabilities of the company are primarily or wholly attributable.]