Section 195C | Company that receives mixed consideration: N exceeds C ^F1

(1)This section applies to a mixed-consideration swap if—^F1

(a)the no gain/no loss loss amount (“N”) of the company that receives the mixed consideration (“company R”), exceeds^F1

(b)the amount of non-licence consideration (“C”) which company R receives.^F1

(2)In a case where company R acquires only one licence, company R is to be treated as if it had acquired the licence for a consideration of—^F1

(3)In a case where company R acquires two or more licences, as regards each licence acquired, company R is to be treated as if it had acquired the licence for a consideration of—^F1

(4)The disposal by company R of a licence under the swap is to be taken to be one on which neither a gain nor a loss accrues.^F1

(5)But (despite subsection (4)), the disposal by company R is not a no gain/no loss disposal for the purposes of section 56.^F1

(6)For the purposes of the application of sections 53 and 54, any enactment is to be disregarded insofar as it provides that, if the other company which acquires a licence under the swap (“company G”) subsequently disposes of the licence, company R's acquisition of the licence is to be treated as company G's acquisition of it.^F1

(7)In this section the reference to the no gain/no loss amount of company R is a reference to—^F1

(a)in a case where company R disposes of only one licence, company R's no gain/no loss amount in relation to that disposal, or^F1

(b)in a case where company R disposes of two or more licences, the aggregate of company R's no gain/no loss amounts in relation to all of those disposals.^F1