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(1)In Part 5 of TCGA 1992 (transfer of business assets), in Chapter 1 (general provisions), after section 162A insert—
(1)This section applies where—
(a)a company transfers its business to some or all of the shareholders of the company, and
(b)a claim for disincorporation relief in respect of the transfer has been made under section 58 of the Finance Act 2013.
(2)The disposal and acquisition of any qualifying asset of the business included in the transfer is to be deemed to be for a consideration equal to the lower of—
(a)the sums allowable under section 38 as a deduction in the computation of the gain accruing to the company on the disposal of the asset in question, and
(b)the market value of the asset.
(3)In subsection (2) a “qualifying asset” means—
(a)goodwill, or
(b)an interest in land which is not held as trading stock.
(4)But subsection (2) does not apply to the goodwill of the business if section 162C applies to it.
(1)This section applies where—
(a)a company transfers its business to some or all of the shareholders of the company,
(b)a claim for disincorporation relief in respect of the transfer has been made under section 58 of the Finance Act 2013, and
(c)section 849A of CTA 2009 (disincorporation relief: transfer values for post-FA 2002 goodwill) applies to the transfer of the goodwill of the business.
(2)The acquisition of the goodwill of the business is deemed to be for a consideration equal to the value at which the goodwill is treated as transferred by virtue of section 849A of CTA 2009.”
(2)In Part 8 of CTA 2009 (intangible fixed assets), Chapter 13 (transactions between related parties) is amended as follows.
(3)In section 844 (overview of Chapter), in subsection (2) for “849” substitute “ 849A ”.
(4)In section 845 (transfer between company and related party treated as at market value), in subsection (4) (exceptions to basic rule)—
(a)omit the “and” at the end of paragraph (ca), and
(b)after paragraph (d) insert “, and
(e)section 849A (disincorporation relief: transfer values for post-FA 2002 goodwill).”
(5)After section 849 insert—
(1)This section applies where—
(a)a company transfers its business to some or all of the shareholders of the company, and
(b)a claim for disincorporation relief in respect of the transfer has been made under section 58 of the Finance Act 2013.
(2)If section 735 applies to the transfer of the goodwill of the business, the transfer is treated for the purposes of this Part as being at the lower of—
(a)the tax written-down value of the goodwill, and
(b)its market value.
(3)If section 736 applies to the transfer of the goodwill of the business, the transfer is treated for the purposes of this Part as being at the lower of—
(a)the cost of the goodwill, and
(b)its market value.
(4)If section 738 applies to the transfer of the goodwill of the business, the proceeds of realisation of the goodwill are treated for the purposes of this Part as being nil.
(5)In subsection (2)(a) the reference to the tax written-down value of the goodwill is to its tax written-down value immediately before the transfer.
(6)In subsection (3)(a) “the cost of the goodwill” means the cost recognised for tax purposes (determined in accordance with section 736(6) and (7)).
(7)In this section market value has the meaning given in section 845(5).”
(6)The amendments made by this section have effect in relation to a transfer of a business with a business transfer date of 1 April 2013 or a later date.
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