SCHEDULES
SCHEDULE 13

Transfer schemes: tax provisions
Part 5

Other provisions concerning transfers between public bodies

Chargeable gains: degrouping charges
31
1
This paragraph applies if a company (“the degrouped company”)—
a
acquired an asset from another company at a time when both were members of the same group of companies (“the old group”),
b
ceases by virtue of a relevant transfer to be a member of the old group, and
c
becomes by virtue of the transfer a member of the same group of companies as the transferee (“the new group”).
2
Section 179 of TCGA 1992 (company ceasing to be member of group) is not to treat the degrouped company as having by virtue of the transfer sold and immediately reacquired the asset.
3
Where sub-paragraph (2) has applied to an asset, section 179 of TCGA 1992 is to have effect on and after the first subsequent occasion on which the degrouped company ceases to be a member of the new group otherwise than by virtue of a relevant transfer as if—
a
the degrouped company, and
b
the company from which it acquired the asset,
had been members of the new group at the time of acquisition.
4
If, disregarding any preparatory transactions, a company would be regarded by virtue of a relevant transfer—
a
as ceasing to be a member of a group of companies for the purposes of section 179 of TCGA 1992 (and, accordingly, of this paragraph), or
b
as becoming a member of a group of companies for the purposes of this paragraph,
it is to be regarded for those purposes as so doing by virtue of the relevant transfer and not by virtue of any preparatory transactions.
5
In this paragraph “preparatory transactions” means anything done under or by virtue of this Act for the purpose of initiating, advancing or facilitating the relevant transfer in question.
6
Expressions used in this paragraph and in section 179 of TCGA 1992 have the same meanings in this paragraph as in that section.