10(1)Section 175 of the M1Taxation of Chargeable Gains Act 1992 is amended as follows.U.K.
(2)In subsection (1) after “all the trades" insert “ to which this section applies ”.
(3)After subsection (1) insert—
“(1A)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.”.
(4)In subsection (2A), after paragraph (b) insert—
“(ba)the conditions in subsection (2AA) below are met, and”.
(5)After subsection (2A) insert—
“(2AA)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.”.
(6)For subsection (3) substitute—
“(3)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).”.
(7)The above amendments, and the main amendments so far as they apply for the purposes of section 175, have effect in relation to cases in which—
(a)either the disposal or acquisition is on or after 1st April 2000, or
(b)both the disposal and acquisition are on or after that date.
(8)In a case falling within paragraph (a) of sub-paragraph (7) above, any question whether a company was, at the time of the acquisition or disposal corresponding to the disposal or acquisition referred to in that paragraph, a member of a group shall be determined in accordance with section 170 of the Taxation of Chargeable Gains Act 1992 as amended by the main amendments.
Marginal Citations