Part VI Companies, oil, insurance etc.
Chapter I Companies
Transactions within groups
C2C3175 Replacement of business assets by members of a group.
1
F81A
The trades to which this section applies are—
a
any trade carried on by a company that is resident in the United Kingdom, and
b
any trade carried on in the United Kingdom through a branch or agency by a company not so resident.
2
Subsection (1) above does not apply where so much of the consideration for the disposal of the old assets as is applied in acquiring the new assets or the interest in them is so applied by a member of the group which is a dual resident investing company F2... and in this subsection “the old assets” and “the new assets” have the same meanings as in section 152.
F12A
Section 152 F4or 153 shall apply where—
a
the disposal is by a company which, at the time of the disposal, is a member of a group of companies,
b
the acquisition is by another company which, at the time of the acquisition, is a member of the same group, and
F9ba
the conditions in subsection (2AA) below are met, and
C1c
the claim is made by both companies,
as if both companies were the same person.
F102AA
The conditions referred to in subsection (2A)(ba) above are—
a
that the company making the disposal is resident in the United Kingdom at the time of the disposal, or the assets are chargeable assets in relation to that company immediately before that time, and
b
that the acquiring company is resident in the United Kingdom at the time of the acquisition, or the assets are chargeable assets in relation to that company immediately after that time.
For this purpose an asset is a “chargeable asset” in relation to a company at any time if, were the asset to be disposed of by the company at that time, any gain accruing to the company would be a chargeable gain and would by virtue of section 10(3) form part of its chargeable profits for corporation tax purposes.
2B
Section 152 F5or 153 shall apply where a company which is a member of a group of companies but is not carrying on a trade—
a
disposes of assets (or an interest in assets) used, and used only, for the purposes of the trade which (in accordance with subsection (1) above) is treated as carried on by the members of the group which carry on a trade, or
b
acquires assets (or an interest in assets) taken into use, and used only, for those purposes,
as if the first company were carrying on that trade.
2C
F6Neither section 152 nor section 153 shall apply if the acquisition of, or of the interest in, the new assets—
a
is made by a company which is a member of a group of companies, and
b
is one to which any of the enactments specified in section 35(3)(d) applies.
F113
Section 154(2) applies where the company making the claim is a member of a group of companies—
a
as if all members of the group for the time being carrying on a trade to which this section applies were the same person, and
b
in accordance with subsection (1) above, as if all those trades were the same trade;
so that the gain accrues to the member of the group holding the asset concerned on the occurrence of the event mentioned in section 154(2).
4
Subsection (2) above shall apply where the acquisition took place before 20th March 1990 and the disposal takes place within the period of 12 months beginning with the date of the acquisition or such longer period as the Board may by notice allow with the omission of the words from “or a company" to “the acquisition".