SCHEDULES
SCHEDULE 29 Chargeable gains: non-resident companies and groups etc.
Part I Application of Taxation of Chargeable Gains Act 1992
Transfers within a group
2
1
Section 171 of the M1Taxation of Chargeable Gains Act 1992 (transfers within a group: general provisions) is amended as follows.
2
For subsection (1) (treatment for corporation tax purposes of transfer of asset within group) substitute—
1
Where—
a
a company (“company A”) disposes of an asset to another company (“company B”) at a time when both companies are members of the same group, and
b
the conditions in subsection (1A) below are met,
company A and company B are treated for the purposes of corporation tax on chargeable gains as if the asset were acquired by company B for a consideration of such amount as would secure that neither a gain nor a loss would accrue to company A on the disposal.
1A
The conditions referred to in subsection (1)(b) above are—
a
that company A is resident in the United Kingdom at the time of the disposal, or the asset is a chargeable asset in relation to that company immediately before that time, and
b
that company B is resident in the United Kingdom at the time of the disposal, or the asset is a chargeable asset 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.
3
In subsection (2)—
a
in paragraph (a), for “a member of a group of companies" substitute “
company B
”
, and
b
in the closing words, for “a member of a group of companies" substitute “
company A
”
.
4
In subsection (3) for “the company first mentioned in that subsection" substitute “
company A
”
.
5
After subsection (5) add—
6
Subsection (1) above applies notwithstanding any provision in this Act fixing the amount of the consideration deemed to be received on a disposal or given on an acquisition.
But where it is assumed for any purpose that a member of a group of companies has sold or acquired an asset, it shall be assumed also that it was not a sale or acquisition to which this section applies.
6
The above amendments, and the main amendments so far as they apply for the purposes of section 171, have effect in relation to disposals on or after 1st April 2000.