Railways Act 2005

Railways Act 2005

2005 CHAPTER 14

Commentary on Schedules

Schedule 10: Taxation provisions relating to transfer schemes

245. This Schedule makes provision for the consequences for taxation of the various transfer schemes and transfers for which the Act provides. The effect is, very broadly, to remove tax consequences which flow from the way the transfers are effected by schemes made under the Act. Similar provisions were made for previous reorganisations – for example, in Schedule 26 to the Transport Act 2000 (c.38).

246. The provisions reflect the different nature of different transfers:

• Part 1 deals with transfers under section 1 from the SRA and other publicly owned bodies to a national authority which is not liable to tax;

• Part 2 deals with transfers under section 1 from the SRA and other publicly owned bodies to a publicly owned body which is (in principle at least) liable to tax;

• Part 3 deals with transfers under section 12 which may be between two privately owned companies each of which is liable to tax;

• Part 4 deals with points which apply to transfer schemes generally.