Part VI Companies, oil, insurance etc.
Chapter I Companies
Transactions within groups
C1C2171AF1 Election to reallocate gain or loss to another member of the group
1
This section applies where—
a
a chargeable gain or an allowable loss accrues to a company (“company A”) in respect of an asset (or would so accrue but for an election under this section),
b
at the time of accrual, company A and another company (“company B”) are members of the same group, and
c
had company A disposed of the asset to company B immediately before the time of accrual, section 171(1) would have applied.
2
In determining for the purposes of subsection (1)(c) whether subsection (1) of section 171 would have applied, it is to be assumed that subsection (1A)(b) of that section read—
b
that, at the time of the disposal, company B is resident in the United Kingdom, or carrying on a trade in the United Kingdom through a permanent establishment there.
3
In this section “the time of accrual” means the time the chargeable gain or allowable loss accrues to company A (or would so accrue but for an election under this section).
4
Companies A and B may make a joint election to transfer the chargeable gain or allowable loss, or such part of it as is specified in the election, from company A to company B.
5
An election under this section must be made—
a
by notice to an officer of Revenue and Customs, and
b
no later than two years after the end of the accounting period of company A in which the time of accrual falls.
6
An election, or two or more elections made simultaneously, is or are of no effect if, taken together with each earlier election (if any) made in respect of the same gain or loss, it or they would (apart from this subsection) have effect in relation to an amount exceeding the gain or loss.
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8
For the effect of an election under this section, see section 171B.