(1)This section applies where an asset which has been used wholly and exclusively for the purposes of the business of C (residual) begins to be used wholly and exclusively for the purposes of the business of C (tax-exempt).
(2)The asset shall be treated as having been—
(a)disposed of by C (residual), and
(b)immediately re-acquired by C (tax-exempt).
(3)The sale and re-acquisition deemed under subsection (2) shall be treated as being for a consideration equal to the market value of the asset.
(4)For the purposes of CAA 2001—
(a)the sale and re-acquisition deemed under subsection (2)—
(i)shall not give rise to allowances or charges, and
(ii)shall not make it possible to make an election under section 198 or 199 of that Act (apportionment),
(b)subsection (3) above shall not apply, and
(c)anything done by or to C (residual) before the deemed sale and re-acquisition shall be treated after the deemed sale and re-acquisition as having been done by or to C (tax-exempt).
Modifications etc. (not altering text)
C1S. 126 applied (with modifications) (1.1.2007) by The Real Estate Investment Trusts (Joint Ventures) Regulations 2006 (S.I. 2006/2866), reg. 7(6)
S. 126 applied (1.1.2007) by The Real Estate Investment Trusts (Joint Ventures) Regulations 2006 (S.I. 2006/2866), reg. 13(7) (subject to reg. 14)
C2S. 126 applied (with modifications) (31.12.2007) by The Real Estate Investment Trusts (Joint Venture Groups) Regulations 2007 (S.I. 2007/3425), reg. 13(8)
S. 126 applied (with modifications) (31.12.2007) by The Real Estate Investment Trusts (Joint Venture Groups) Regulations 2007 (S.I. 2007/3425), reg. 23(8)