Part 8

Intangible fixed assets
Chapter 9

Application of this Part to groups of companies

Reallocation of degrouping charge within group and recovery

Interpretation of section 795
796
1
For the purposes of section 795 and this section—
- “the relevant accounting period” is the accounting period in which the degrouping charge falls to be brought into account by A,
- “the relevant time” is—
  1. in a case within section 780, when A ceased to be a member of the group,
  2. in a case within section 785, when A ceased to meet the qualifying condition (within the meaning of that section), and
  3. if there has been an election under section 792, the time that would have been the relevant time under paragraph (a) or (b) had there been no such election, and
- “the relevant asset” is the asset in respect of which the degrouping charge arises.
2
For the purposes of section 795 the amount of corporation tax referable to a degrouping charge is the difference between—
a
the tax in fact payable for the relevant accounting period, and
b
the tax that would have been payable for that period in the absence of the degrouping charge.
3
References in section 795 and this section to a degrouping charge are to—
a
a credit required to be brought into account under section 780(3) or 785(4), or
b
if there has been an election under section 792, a credit required to be brought into account as a result of the election.
4
In section 795 and this section—
- “director”, in relation to a company—
  1. has the meaning given by section 67(1) of ITEPA 2003 (read with section 67(2) of that Act) and
  2. includes any person falling within section 452(1) of CTA 2010 ,
- “controlling director”, in relation to a company, means a director of the company who has control of it, and
- “group” and “principal company” have the meaning that would be given by Chapter 8 if in that Chapter for references to 75% subsidiaries there were substituted references to 51% subsidiaries.
5
In subsection (4) “control” is to be read in accordance with sections 450 and 451 of CTA 2010.
Pt. 8 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 6(1)
Pt. 8 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. 8 modified (1.10.2011) by Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 2 para. 6(1); S.I. 2011/2329, art. 3
Pt. 8 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)
Pt. 8 modified (15.11.2011 for specified purposes, 30.3.2012 for E.W.) by Localism Act 2011 (c. 20), ss., 240(5)(o), Sch. 24 para. 1(3); S.I. 2012/628, art. 3(b)
Pt. 8 modified (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 35, 45 (with Sch. 5 para. 36)
Pt. 8 modified (1.4.2012) by Budget Responsibility and National Audit Act 2011 (c. 4), s. 29, Sch. 4 para. 3(1); S.I. 2011/2576, art. 5
Words in s. 796(5) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 653(3) (with Sch. 2)
Words in s. 796(4) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 653(2) (with Sch. 2)