Section 97 | Transfers within group, etc.

(1)Where a close company (“the transferor company”) is a member, but not the principal company, of a group and—^F1

(a)there is—^F2

(i)a disposal of an asset by the transferor company, which is a disposal to which section 171(1) of the 1992 Act applies, or^F2

(ii)by virtue of an election under section 171A(2) of that Act, a deemed transfer by the transferor company to another member of the group,. . .^F2F3F4

(iii)Repealed^F2F3F4

(aa)the disposal is also, or the election gives rise to, a transfer of value, and^F2F5

(b)the transfer of value has only a small effect on the value of the minority participators’ rights and interests in that company compared with its effect on the value of the other participators’ rights and interests in the company,

the rights and interests of the minority participators shall be left out of account in determining the respective rights and interests of the transferor company’s participators for the purpose of apportioning the value transferred under section 94 above.

(2)For the purposes of subsection (1) above—^F6

(a)Section 170 of the 1992 Act (groups of companies: definitions) applies as for the purposes of sections 171 to 181 of that Act, and^F7F8

(b)a minority participator is a participator of the transferor company who is not, and is not a person connected with, a participator of the principal company of the group or of any of the principal company’s participators;^F9

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