Search Legislation

Taxation of Chargeable Gains Act 1992

 Help about what version

What Version

 Help about advanced features

Advanced Features

 Help about opening options

Opening OptionsExpand opening options

Changes over time for: Section 172

 Help about opening options

Version Superseded: 03/05/1994

Status:

Point in time view as at 06/04/1992. This version of this provision has been superseded. Help about Status

Changes to legislation:

Taxation of Chargeable Gains Act 1992, Section 172 is up to date with all changes known to be in force on or before 07 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations. Help about Changes to Legislation

172 Transfer of United Kingdom branch or agency.U.K.

(1)Subject to subsections (3) and (4) below, subsection (2) below applies for the purposes of corporation tax on chargeable gains where—

(a)there is a scheme for the transfer by a company (“company A”)—

(i)which is not resident in the United Kingdom, but

(ii)which carries on a trade in the United Kingdom through a branch or agency,

of the whole or part of the trade to a company resident in the United Kingdom (“company B”),

(b)company A disposes of an asset to company B in accordance with the scheme at a time when the 2 companies are members of the same group, and

(c)a claim in relation to the asset is made by the 2 companies within 2 years after the end of the accounting period of company B during which the disposal is made.

(2)Where this subsection applies—

(a)company A and company B shall be treated as if the asset were acquired by company B for a consideration of such amount as would secure that neither a gain nor a loss would accrue to company A on the disposal, and

(b)section 25(3) shall not apply to the asset by reason of the transfer.

(3)Subsection (2) above does not apply where—

(a)company B, though resident in the United Kingdom,—

(i)is regarded for the purposes of any double taxation relief arrangements as resident in a territory outside the United Kingdom, and

(ii)by virtue of the arrangements would not be liable in the United Kingdom to tax on a gain arising on a disposal of the asset occurring immediately after its acquisition, or

(b)company B is either a dual resident investing company or an investment trust.

(4)Subsection (2) above shall not apply unless any gain accruing to company A—

(a)on the disposal of the asset in accordance with the scheme, or

(b)where that disposal occurs after the transfer has taken place, on a disposal of the asset immediately before the transfer,

would be a chargeable gain and would, by virtue of section 10(3), form part of its profits for corporation tax purposes.

(5)In this section “company” and “group” have the meanings which would be given by section 170 if subsections (2)(a) and (9) of that section were omitted.

Modifications etc. (not altering text)

C1S. 172 excluded (27.7.1993) by 1993 c. 34, ss. 165(1), 169, Sch. 17 para. 7(2)(b)

Back to top

Options/Help

You have chosen to open The Whole Act without Schedules

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act without Schedules as a PDF

The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?