SCHEDULES
SCHEDULE 7 Transfer schemes: tax
Chargeable gains: groups
I110
1
Sub-paragraph (4) applies if—
a
a company ceases by virtue of a relevant transfer to be a member of a group of companies (the old group),
b
it becomes by virtue of the transfer a member of another group of companies (the new group),
c
a company falling within sub-paragraph (2) (the degrouped company) ceases to be a member of the new group, and
d
the condition in sub-paragraph (3) is satisfied.
2
A company falls within this sub-paragraph if immediately before it ceases to be a member of the new group it is a subsidiary of—
a
the company referred to in sub-paragraph (1)(a), or
b
the principal company of the new group (if that company differs from the company referred to in sub-paragraph (1)(a)).
3
The condition is that—
a
the degrouped company acquired an asset under a relevant transfer at a time falling before it ceases to be a member of the new group, and
b
at the time of acquisition the degrouped company and the transferor were not members of the new group.
4
On the degrouped company ceasing to be a member of the new group section 179 of the 1992 Act is to have effect as if the degrouped company and the transferor had been members of the new group at the time of acquisition.
5
But sub-paragraph (4) does not apply if—
a
at the time when the degrouped company ceases to be a member of the new group the transferor also ceases to be a member of the new group,
b
the companies are associated companies immediately before and immediately after that time, and
c
the companies were associated companies at the time of acquisition.
6
Expressions used in this paragraph and in section 179 of the 1992 Act have the same meanings in this paragraph as in that section.