SCHEDULES
SCHEDULE 7 Transfer schemes: tax
Chargeable gains: groups
I18
1
Sub-paragraph (2) applies if a company (the degrouped company)—
a
acquired an asset from another company at any time when both were members of the same group of companies (the old group),
b
ceases by virtue of a relevant transfer to be a member of the old group, and
c
becomes by virtue of the transfer a member of another group of companies (the new group).
2
Section 179 of the 1992 Act (company ceasing to be member of group) is not to treat the degrouped company as having by virtue of the transfer sold and immediately reacquired the asset.
3
Sub-paragraph (4) applies if—
a
sub-paragraph (2) applies to an asset, and
b
the degrouped company ceases to be a member of the new group.
4
On the company so ceasing section 179 of the 1992 Act is to have effect as if the degrouped company and the company from which it acquired the asset 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 company from which it acquired the asset 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.