SCHEDULE 1 U.K.CROSS-BORDER TRANSFERS OF BUSINESS

Modifications etc. (not altering text)

C1 Sch. 1 modified (retrospective to 29.11.2007) by The Corporation Tax (Implementation of the Mergers Directive) Regulations 2008 (S.I. 2008/1579), regs. 1(2), 4

PART 3 U.K.AMENDMENTS OF FA 1996

17.  In paragraph 12A (transferee leaving group) M1 — U.K.

(a) after sub-paragraph (5) insert—

“(5A) Where an asset or liability which represents a loan relationship is transferred as part of the process of a transfer to which paragraph 12B M2 or 12D applies, and in consequence of the transfer the transferee company ceases to be a member of a group (“Group 1”)—

(a) the transferee shall not be treated for the purposes of this paragraph as having left Group 1, and

(b) if in consequence of the transfer the transferee becomes a member of another group (“Group 2”) it shall be treated, for the purposes of this paragraph, as if Group 1 and Group 2 were the same.”, and

(b) in sub-paragraph (8), in the definition of “exempt distribution” after “section 213(2)” insert “ or 213A M3 ”.

Marginal Citations

M1 Paragraph 12A of Schedule 9 was inserted by paragraph 18(1) of Schedule 7 to the Finance (No. 2) Act 2005.

M2 Paragraph 12B was inserted by section 54 of the Finance (No. 2) Act 2005.

M3 Section 213A is inserted by paragraph 13 of Schedule 1 to these Regulations.