SCHEDULE 12 Reallocation of Chargeable Gain or Loss Within a Group
Finance Act 2009 (2009 c 10) | Legislation

SCHEDULE 12 Reallocation of Chargeable Gain or Loss Within a Group

Section 31

Main provisions

1

In TCGA 1992, for section 171A substitute—

“171A Election to reallocate gain or loss to another member of the group

(1)     This section applies where—

(a)     a chargeable gain or an allowable loss accrues to a company (“company Aâ€) in respect of an asset (or would so accrue but for an election under this section),

(b)     at the time of accrual, company A and another company (“company Bâ€) are members of the same group, and

(c)     had company A disposed of the asset to company B immediately before the time of accrual, section 171(1) would have applied.

(2)     In determining for the purposes of subsection (1)(c) whether subsection (1) of section 171 would have applied, it is to be assumed that subsection (1A)(b) of that section read—

“(b)     that, at the time of the disposal, company B is resident in the United Kingdom, or carrying on a trade in the United Kingdom through a permanent establishment there.â€

(3)     In this section “the time of accrual†means the time the chargeable gain or allowable loss accrues to company A (or would

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