C3C1C2Part 7Derivative contracts
Pt. 7 modified (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 88(1)(2)(7) (with s. 147, Sch. 17)
Pt. 7 modified by 2007 c. 3, s. 809FZZ(8) (as inserted (with effect in accordance with s. 37(4) of the amending Act) by Finance Act 2016 (c. 24), s. 37(2))
Chapter 5Continuity of treatment on transfers within groups
Transferee leaving group after replacing transferor as party to derivative contract
632Transferee leaving group because of exempt distribution
1
This section applies if—
a
the transferee ceases to be a member of the relevant group just because of a distribution which is exempt F1as a result of section 1075 of CTA 2010 (exempt distributions), and
b
there is a chargeable payment within the meaning of F3section 1088(1) of CTA 2010 (chargeable payments connected with exempt distributions) within 5 years after the making of the distribution.
2
F2... This Part applies as if—
a
the transferee had assigned its rights and liabilities under the relevant derivative contract immediately before that chargeable payment was made,
b
the assignment had been for consideration of an amount equal to their fair value immediately before the transferee ceased to be a member of the relevant group, and
c
the transferee had immediately reacquired them for consideration of the same amount.
F43
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F44
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Pt. 7 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)