SCHEDULES

SCHEDULE 7 Transfer schemes relating to BBC transmission network: taxation provisions

Corporation tax: no profit or loss under Case I of Schedule D by reason of a direct disposal transfer

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In determining for the purposes of Case I of Schedule D the profits or gains or losses arising or accruing to the BBC, it shall be assumed that no profits or gains, and no losses, arise or accrue to the BBC by reason of a direct disposal transfer of—

a

any trading stock, within the meaning of section 100 of the Taxes Act 1988, belonging to a trade carried on by the BBC;

b

any right of the BBC to receive an amount which is for the purposes of corporation tax—

i

an amount brought into account as a trading receipt of the BBC for any accounting period ending before the time when the transfer takes effect; or

ii

an amount falling to be so brought into account if it is assumed, where it is not the case, that the accounting period of the BBC current on the day before the transfer takes effect ends immediately before that time; or

c

the whole or any part of the amount of a liability which falls for the purposes of corporation tax—

i

to be brought into account as deductible in computing the profits of any trade carried on by the BBC for any accounting period ending before the time when the transfer takes effect; or

ii

to be so brought into account if it is assumed, where it is not the case, that the accounting period of the BBC current on the day before the transfer takes effect ends immediately before that time.