7(1)Part 8 of CTA 2009 (intangible fixed assets) is amended as follows.U.K.
(2)In section 780 (deemed realisation and reacquisition at market value), in subsection (5)(b) before “associated” insert “ certain ”.
(3)In section 783 (associated companies leaving group at same time), for subsection (1) substitute—
“(1)Where two companies cease to be members of a group at the same time, section 780 does not apply in relation to a transfer by one of the companies to the other if condition A or B is met.
(1A)Condition A is that the companies—
(a)are both 75% subsidiaries and effective 51% subsidiaries of another company on the date of the transfer, and
(b)remain both 75% subsidiaries and effective 51% subsidiaries of that other company until immediately after they cease to be members of the group.
(1B)Condition B is that one of the companies—
(a)is both a 75% subsidiary and an effective 51% subsidiary of the other on the date of the transfer, and
(b)remains both a 75% subsidiary and an effective 51% subsidiary of the other until immediately after the companies cease to be members of the group.”, and, in the section heading, for “Associated” substitute “ Certain associated ”.
(4)In section 788 (provisions supplementing provisions about degrouping), for subsection (3) substitute—
“(3)For the purposes of those sections and this section two companies are associated with each other if one is a 75% subsidiary of the other or both are 75% subsidiaries of another company.”