Finance (No. 2) Act 2005

65 Restrictions on set-off of pre-entry losses

(1) Schedule 7A to TCGA 1992 (restrictions on set-off of pre-entry losses) shall be amended as follows.

(2) After paragraph 1(3A)(a) insert—

“(aa) in a case in which (whether or not paragraph (a)(i) also applies)—

(i) the company is an SE resident in the United Kingdom, and

(ii) the asset was transferred to the SE as part of the process of its formation by the merger by acquisition of two or more companies in accordance with Articles 2(1) and 17(2)(a) or (b) of Council Regulation (EC) 2157/2001 on the Statute for a European Company (Societas Europaea),

are references to the asset becoming a chargeable asset in relation to the SE or, if at the time of the formation of the SE the asset was a chargeable asset in relation to a company which ceased to exist as part of the process of the formation of the SE, to the asset becoming a chargeable asset in relation to that company;”.

(3) In the definition of “chargeable asset” in paragraph 1(3A) after “section 10B” insert “(or, if the company is an SE, by reason of the asset having been transferred to the SE on its formation)”.

(4) In paragraph 1(6)(a) after “subsection (10)” insert “or (10A)”.

(5) In paragraph 9(6) after “subsection (10)” insert “or (10A)”.

(6) This section shall have effect in relation to the formation of an SE which occurs on or after 1st April 2005.