SCHEDULES
SCHEDULE 7 Transfer schemes: tax
Trading losses: change in ownership
I114
1
This paragraph applies if under a relevant transfer all the issued share capital of a company (the transferred company) is transferred from the CAA to—
a
the Secretary of State, or
b
a company whose shares are all held by the Secretary of State when the transfer takes effect.
2
For the purposes of section 768 of the 1988 Act (disallowance of trading losses on change in company’s ownership) the transfer is not to be taken to result in a change in the ownership of—
a
the transferred company, or
b
a company which is a wholly owned subsidiary of the transferred company when the transfer takes effect.