Part 8Intangible fixed assets
Chapter 9Application of this Part to groups of companies
Company ceasing to be member of group
784Groups with a relevant connection
1
For the purposes of section 783(2) there is a relevant connection between the first group and the second group if, at the time when the transferee ceases to be a member of the second group, the company which is the principal company of that group is under the control of—
a
a person within subsection (2),
b
a person or persons within subsection (3), or
c
a person or persons within subsection (4).
2
A person is within this subsection if it is the company—
a
that is the principal company of the first group, or
b
if that group no longer exists, that was its principal company when the transferee ceased to be a member of it.
3
A person or persons are within this subsection if they—
a
control the company within subsection (2), or
b
have had it under their control at any time in the period since the transferee ceased to be a member of the first group.
4
A person or persons are within this subsection if they have, at any time in that period, had under their control either—
a
a company that would have fallen within subsection (3) if it had continued to exist, or
b
a company to which subsection (5) applies.
5
This subsection applies to a company if, had the company continued to exist—
a
it would have fallen within subsection (4) because of its control of another company that would have fallen within subsection (3) if that other company had continued to exist, or
b
it would have fallen within subsection (4) because of its control of a company to which paragraph (a) or this paragraph would have applied.
6
Section 416(2) to (6) of ICTA (meaning of control) applies for the purposes of this section as it applies for the purposes of Part 11 of that Act.
7
But a person carrying on a business of banking is not treated for those purposes as having control of a company just because of—
a
having any rights in respect of loan capital or debt issued or incurred by the company for money lent by that person to the company in the ordinary course of that business, or
b
the consequences of having exercised such rights.
8
References in this section to “the first group”, “the second group” and “the transferee” must be read in accordance with section 783.