SCHEDULES
C1C2SCHEDULE 29Gains and losses of a company from intangible fixed assets
Sch. 29 modified (5.10.2004) by Energy Act 2004 (c. 20), s. 198(2), Sch. 9 para. 28 (with s. 38(2)); S.I. 2004/2575, art. 2(1), Sch. 1
C2Part 9Application of provisions to groups of companies
71Payments between group members in respect of reliefs
1
This paragraph applies to payments—
a
for group roll-over relief, or
b
for the reallocation of a degrouping charge.
2
A payment for group roll-over relief means a payment made—
a
in connection with a claim for relief under Part 7 (roll-over relief in case of realisation and reinvestment) made by virtue of—
i
paragraph 56 (realisation by one group company and reinvestment by another), or
ii
paragraph 57 (acquisition of group company treated as equivalent to acquisition of underlying assets),
b
by the company whose proceeds of realisation are reduced as a result of the claim,
c
to a company whose acquisition costs are reduced (in a case within paragraph 56) or the tax written-down value of whose assets is reduced (in a case within paragraph 57) as a result of the claim,
d
in pursuance of an agreement between those companies in connection with the claim.
3
A payment for the reallocation of a degrouping charge means a payment made—
a
in connection with an election under paragraph 66 (reallocation of degrouping charge within group),
b
by the company to which the chargeable realisation gain accrues to the company to which as a result of the election the whole or part of that gain is treated as accruing,
c
in pursuance of an agreement between those companies in connection with the election.
4
A payment to which this paragraph applies—
a
shall not be taken into account in computing profits or losses of either company for corporation tax purposes, and
b
shall not for any of the purposes of the Corporation Tax Acts be regarded as a distribution or a charge on income,
provided it does not exceed the amount of the relief.
5
For this purpose the amount of the relief is—
a
in the case of a payment in connection with a claim for relief under paragraph 56, the amount of the reduction as a result of the claim in the acquisition costs of the company to which the payment is made;
b
in the case of a payment in connection with a claim for relief under paragraph 57, the amount of the reduction as a result of the claim in the tax-written down value of the assets of the company to which the payment is made;
c
in the case of a payment in connection with an election under paragraph 66, the amount treated as a result of the election as accruing to the company to which the payment is made.
Sch. 29 applied (with modifications) (15.8.2002) by S.I. 2002/1967, regs. 3-6