Group transactionsE+W+S
3(1)For the purposes of section 179 of the M1Taxation of Chargeable Gains Act 1992 (company ceasing to be a member of a group) where, by virtue of a qualifying transfer from London Regional Transport or a subsidiary of London Regional Transport to Transport for London or a subsidiary of Transport for London, a company—E+W+S
(a)ceases to be a member of the same group of companies as London Regional Transport, but
(b)becomes a member of a group of companies whose principal company (“the new principal”), whether it is the company or not, is a subsidiary of Transport for London,
the company shall not under that section be treated, in consequence of having so ceased, as at any time having sold, and immediately reacquired, any asset acquired from a company which is or has been a member of the former group.
(2)Subject to sub-paragraph (3) below, where sub-paragraph (1) above applies, or but for subsection (2) of section 179 of the M2Taxation of Chargeable Gains Act 1992 would apply, as respects any acquisition of any asset and the company that acquired the asset ceases to be a member of the same group of companies as the new principal, that section shall have effect as if—
(a)that asset had been acquired from the body which is the new principal; and
(b)the company had been a member of the same group of companies as that body when it was so acquired;
and where, for the purposes of that subsection, this sub-paragraph applies as respects more than one of a number of successive acquisitions of any asset, the fact that each is to be treated as an acquisition from the same person shall be disregarded.
(3)Where—
(a)any asset has been acquired by any company (“the leaving company”) from another company,
(b)both of those companies cease at the same time to be members of the same group of companies as the new principal, and
(c)those companies are associated companies both immediately before and immediately after that time and at the time of the acquisition of the asset by the leaving company,
sub-paragraph (2) above shall not apply as respects the acquisition of the asset by the leaving company.
(4)Expressions used in this paragraph and in section 179 of the M3Taxation of Chargeable Gains Act 1992 have the same meaning in this paragraph as in that section.