SCHEDULES
SCHEDULE 2 Provisions relating to carrying out of approved scheme of reorganisation
C1Part I Taxation provisions
Apportionment of losses and capital allowances
13
1
This paragraph applies where part of a trade carried on by a subsidiary of a milk marketing board is transferred under section 11 above to one qualifying body (“the successor body”) and the remainder is retained by the subsidiary.
2
There shall be apportioned between the subsidiary and the successor body—
a
the unallowed tax losses of the subsidiary, and
b
any expenditure incurred by the subsidiary before the date of the transfer and by reference to which capital allowances may be made.
3
The apportionment under sub-paragraph (2) above shall be made in such manner as is just and reasonable having regard—
a
to the extent to which the losses and expenditure mentioned in that sub-paragraph are attributable to the different parts of the trade, and
b
as respects the apportionment of such expenditure, to the division of the subsidiary’s assets between itself and the successor body.
4
In this paragraph, “unallowed tax losses” has the same meaning as in paragraph 12 above.
Sch. 2 Pt. I modified (retrospectively) by 1996 c. 8, s. 203(1)