Skip to content
Solved
SearchBrowse
Sign in

Contents

Legislation
Taxation of Chargeable Gains Act 1992

Crossheading Transactions within groups

  • Section 171 Transfers within a group: general provisions.
  • Section 171A Election to reallocate gain or loss to another member of the group
  • Section 171B Election under section 171A: effect
  • Section 171C Elections under section 171A: insurance companies
  • Section 172 Transfer of United Kingdom branch or agency.
  • Section 173 Transfers within a group: trading stock.
  • Section 174 Disposal or acquisition outside a group.
  • Section 175 Replacement of business assets by members of a group.
  1. Transactions within groups
  2. Election under section 171A: effect

Section 171B | Election under section 171A: effect F1

From legislation.gov.uk

(1)This section applies where an election is made under section 171A.F1

(2)The effect of the election is that the chargeable gain or allowable loss, or such amount of it as is specified in the election, is treated as accruing not to company A but to company B.F1

(3)The gain or loss treated as accruing to company B is to be taken to accrue at the time that, had the election not been made, it would have accrued to company A.F1

(4)Where company B is not resident in the United Kingdom, the gain or loss treated as accruing to it is to be taken to accrue in respect of a chargeable asset held by it.F1

(5)For this purpose an asset is a “chargeable asset” in relation to a company at any time if any gain accruing to the company on a disposal of the asset by the company at that time would be a chargeable gain chargeable to corporation tax as a result of section 2B(3) or (4).F1F2

(6)Any payment made by company A to company B or by company B to company A, in pursuance of an agreement between them in connection with the election—F1

(a)is not to be taken into account in computing profits or losses of either company for corporation tax purposes, andF1

(b)is not for any purposes of the Corporation Tax Acts to be regarded as a distribution,F1

provided it does not exceed the amount of the chargeable gain or allowable loss that is treated, as a result of the election, as accruing to company B.

Notes

  1. F1

    Ss. 171A-171C substituted for s. 171A (with effect in accordance with Sch. 12 para. 5 of the amending Act) by Finance Act 2009 (c. 10), Sch. 12 para. 1

  2. F2

    Words in s. 171B(5) substituted (with effect in accordance with Sch. 1 paras. 120, 123 of the amending Act) by Finance Act 2019 (c. 1), Sch. 1 para. 63

PreviousNext
PrivacyTerms