Section 270 | Charge to tax on certain disposals of United Kingdom securities.

(1)Repealed^F1

(3)Where under section 273 below the companies disposing of and acquiring an asset are to be treated as if the consideration were of such an amount that neither a gain nor a loss accrues on the disposal, and the asset consists of specified securities or qualifying corporate bonds as defined in section 64 of the Finance Act 1984 the company acquiring the asset shall be treated for the purposes of sections 67 to 70 of the Capital Gains Tax Act 1979 as acquiring it at the time when the other acquired it.^F2F3F4

(4)In any case where—

(a)at 3.30 p.m. on 15th April 1969 (in the following provisions of this section referred to as “the relevant time”) or at any time thereafter (whether before or after the commencement of this Act) any specified securities were held by a company in such circumstances that any gain or loss on their disposal would, apart from section 67 of the Capital gains Tax Act 1979( . . . ), have been taken into account in determining the company’s liability to corporation tax on chargeable gains, and^F3F5

(b)those securities are subsequently appropriated by the company in such circumstances that if they were disposed of after the appropriation, any profit accruing on their disposal would be brought into account in computing the company’s income for corporation tax,

then for the purposes of corporation tax any loss incurred by the company on the disposal of those securities shall not exceed the loss which would have been incurred on that disposal if the amount or value of the consideration for the acquisition of the securities had been equal to their market value at the time of the appropriation.

(5)In any case where—

(a)at the relevant time or at any time thereafter (whether before or after the commencement of this Act) any specified securities were held by a company in such circumstances that any profit accruing on their disposal would be brought into account in computing the company’s income for corporation tax, and

(b)those securities are subsequently appropriated by the company in such circumstances that any gain accruing on their disposal would, by virtue of section 67 of the Capital Gains Tax Act 1979, be exempt from corporation tax on chargeable gains,^F6

then for the purposes of corporation tax the company shall be treated as if, immediately before the appropriation, it had sold and repurchased the specified securities at their market value at the time of the appropriation.

(6)In this section “specified securities” means securities which are gilt-edged securities as defined by Schedule 2 to the Capital Gains Tax Act 1979 or qualifying corporate bonds, within the meaning of section 64 of the Finance Act 1984.^F7F6