SCHEDULES

SCHEDULE 1Chargeable gains accruing to non-residents etc

PART 2Consequential amendments

61TCGA 1992

1

Section 171 (transfers within a group: general provisions) is amended as follows.

2

In subsection (1A), in the second sentence, for the words from “and would” to the end substitute “chargeable to corporation tax as a result of section 2B(3) or (4).”

3

After subsection (1A) insert—

1B

If—

a

company A is deemed under section 25(3) to have previously disposed of the asset, but

b

no gain or loss accrued on that deemed disposal as a result of section 25ZA(2),

that deemed disposal is to be ignored in applying subsection (1) of this section in relation to company B.

4

In subsection (2), omit paragraph (ba).