Part 8

Intangible fixed assets
Chapter 9

Application of this Part to groups of companies

Disregard of payments between group members for reliefs

Disregard of payments between group members for reliefs
799
1
If a payment for group roll-over relief or for the reallocation of a degrouping charge does not exceed the amount of the relevant relief—
a
it is not taken into account in calculating profits or losses of either of the companies involved for corporation tax purposes, and
b
it is not a distribution for any of the purposes of the Corporation Tax Acts.
2
A payment for group roll-over relief is a payment made—
a
in connection with a claim for relief under Chapter 7 (roll-over relief in case of realisation and reinvestment) made because of—
i
section 777 (relief on realisation and reinvestment: application to group member), or
ii
section 779 (rules that apply to cases within section 778(1)),
b
by the company whose proceeds of realisation are reduced as a result of the claim,
c
to a company whose acquisition costs are reduced (in a case within section 777) or the tax written-down value of whose assets is reduced (in a case within section 779) as a result of the claim, and
d
in accordance with an agreement between those companies in connection with the claim.
3
A payment for the reallocation of a degrouping charge is a payment made—
a
in connection with an election under section 792 (reallocation of charge within group),
b
by the company to which the chargeable realisation gain accrues,
c
to the company to which as a result of the election the whole or part of that gain is treated as accruing, and
d
in accordance with an agreement between those companies in connection with the election.
4
In the case of a payment in connection with such a claim for relief as is mentioned in section 777(3), the amount of the relevant relief is the amount of the reduction, as a result of the claim, in the acquisition costs of the company to which the payment is made.
5
In the case of a payment in connection with such a claim for relief as is mentioned in section 778(4), the amount of the relevant relief is the amount of the reduction, as a result of the claim, in the tax written-down value of the assets of the company to which the payment is made.
6
In the case of a payment in connection with an election under section 792, the amount of the relevant relief is the amount treated as a result of the election as accruing to the company to which the payment is made.
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