Taxation of Chargeable Gains Act 1992

[F1 188G Company ceasing to be a member of an NRCGT group U.K.

(1) A company ceases to be a member of an NRCGT group if it ceases—

(a) to be a member of the potential pooling group, or

(b) to meet the any of the conditions in paragraphs (a) to (d) of section 188A(3).

(2) Where a company ceases to be a member of an NRCGT group, the company is treated for the purposes of this Act and the Management Act as having—

(a) disposed of the relevant assets immediately before the company ceased to be a member of the NRCGT group, and

(b) immediately re-acquired them,

at their market value at that time.

(3) References in subsection (2) to a company ceasing to be a member of an NRCGT group do not apply to cases where a company ceases to be a member of the potential pooling group in consequence of another member of that group ceasing to exist.

(4) Subsection (2) does not apply in a case where all the companies which are members of an NRCGT group cease to be members of that NRCGT group by reason only of an event which causes—

(a) the principal company of the potential pooling group to cease to be a closely-held company, or

(b) the head of a sub-group of which they are members, to cease to be a closely-held company or to become a member of another group (as defined in section 170).

(5) Subsection (2) does not apply where a company which is a member of an NRCGT group ceases to be a member of the potential pooling group by reason only of the fact that the principal company of the potential pooling group becomes a member of another group (as defined in section 170).

(6) In subsection (2) “the relevant assets” means any assets the company holds immediately before it ceases to be a member of the NRCGT group the disposal of which would be a disposal of a UK residential property interest (see Schedule B1).

(7) For the purposes of this section—

• “sub-group” means anything that would be a group (as defined in section 170) in the absence of subsections (4) and (6) of section 170;

• the “head” of a sub-group is the company which is not a 75% subsidiary of any other member of the sub-group;

• references to the “principal company” of the potential pooling group are to be interpreted in accordance with section 170.]

Textual Amendments

F1 Ss. 188A-188K 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. 30