Part 8Intangible fixed assets
Chapter 9Application of this Part to groups of companies
Company ceasing to be member of group
783Associated companies leaving group at the same time
1
If two or more companies that are associated (see section 788(3)) cease to be members of a group at the same time, section 780 does not apply in relation to a transfer between them.
2
This subsection applies if—
a
a company (“the transferee”) that is a member of a group of companies (“the first group”) acquires an asset from another company (“the transferor”) which is a member of that group at the time of the transfer,
b
the transferee ceases to be a member of the first group,
c
subsection (1) applies in relation to the transferee ceasing to be a member of the first group (so that section 780 does not apply),
d
the transferee subsequently ceases to be a member of another group of companies (“the second group”), and
e
there is a relevant connection between the two groups (see section 784).
3
If subsection (2) applies, section 780 applies in relation to the transferee ceasing to be a member of the second group as if both companies had been members of the second group at the time of the transfer.
4
This section is subject to section 789 (merger carried out for genuine commercial reasons).