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Sections 51(5), 65(5)
1This Schedule makes provision about the fiscal effect of transfers under schemes made under sections 51 and 65.
2(1)In this Schedule—
(a)“transfer scheme” means a scheme under section 51 or 65, and
(b)“transfer” means a transfer under a transfer scheme.
(2)In this Schedule “transfer between bodies” means a transfer—
(a)from the Urban Regeneration Agency, the Commission for the New Towns or the Housing Corporation, and
(b)to the HCA or the Regulator of Social Housing.
(3)In this Schedule “transfer to government” means a transfer to—
(a)a Minister of the Crown, or
(b)the Welsh Ministers.
3(1)In this Schedule—
(a)ICTA means the Income and Corporation Taxes Act 1988 (c. 1),
(b)TCGA means the Taxation of Chargeable Gains Act 1992 (c. 12),
(c)FA 1996 means the Finance Act 1996 (c. 8),
(d)FA 2002 means the Finance Act 2002 (c. 23), and
(e)HMRC means the Commissioners for Her Majesty’s Revenue and Customs.
(2)In this Schedule a reference to a trade includes a reference to part of a trade.
4(1)This paragraph applies if as the result of a transfer scheme—
(a)a transferor ceases a trade, and
(b)a transferee commences it.
(2)In connection with the computation of profits and losses for the purpose of corporation tax in respect of periods wholly or partly after the commencement of the transfer scheme—
(a)the transferee shall be treated as having always carried on the trade, and
(b)the trade shall be considered separately from any other trade of the transferee (with any necessary apportionment being made).
5(1)This paragraph applies in respect of property transferred under a transfer scheme from—
(a)the Urban Regeneration Agency, or
(b)the Commission for the New Towns.
(2)Where the property was used by the transferor, and is to be used by the transferee, in connection with a trade, section 343(2) of ICTA (company reconstructions: capital allowances) shall apply.
6The following transfers shall be treated as giving rise to neither allowance nor charge for the purposes of capital allowances in respect of a trade (and allowances shall be calculated as if the transferee had always carried on the trade)—
(a)a transfer from the Housing Corporation, and
(b)a transfer to government.
7(1)This paragraph applies in respect of property transferred under a transfer scheme from—
(a)the Urban Regeneration Agency,
(b)the Commission for the New Towns, or
(c)the Housing Corporation.
(2)Section 17 of TCGA (disposals and acquisitions treated as at market value) shall not apply.
(3)For the purposes of TCGA the transfer (in relation to the transferor and the transferee) is to be taken as being a disposal for a consideration such that neither gain nor loss accrues.
8A transfer shall be disregarded for the purposes of section 30 of TCGA (value-shifting: tax-free benefits).
9At the end of section 35(3)(d) of TCGA (re-basing to 1982) add—
“(xviii)Schedule 7 to the Housing and Regeneration Act 2008.”
10(1)This paragraph applies for the purposes of Schedule 29 to FA 2002 (intangible assets).
(2)Expressions used in this paragraph have the same meaning as in that Schedule.
(3)A transfer between bodies of a chargeable intangible asset is a tax-neutral transfer.
(4)An intangible fixed asset which is an existing asset of the transferor at the time of a transfer between bodies is to be treated, on and after the transfer, as an existing asset of the transferee.
(5)A transfer to government of a chargeable intangible asset is to be treated as not involving a realisation of the asset by the transferor.
11(1)If as a result of a transfer the transferee replaces the transferor as a party to a loan relationship, paragraph 12(2) of Schedule 9 to FA 1996 (transfer within group: continuity of treatment) shall apply (whether or not the transferor and transferee are bodies corporate).
(2)Expressions used in this paragraph have the same meaning as in that Schedule.
12(1)Stamp duty shall not be chargeable on a transfer scheme.
(2)Stamp duty shall not be chargeable on a document certified by HMRC as connected with a transfer scheme.
(3)A document which is not chargeable by virtue of this paragraph must be stamped in accordance with section 12 of the Stamp Act 1891 (c. 39) with a stamp denoting that it is not chargeable.
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