Section 195E | Company that gives mixed consideration ^F1

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

(a)whatever the no gain/no loss amount (“N”) of the company that gives the mixed consideration (“company G”), and^F1

(b)whatever the amount of the non-licence consideration (“C”) which company G gives.^F1

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

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

(4)The disposal by company G 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 G 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 R”) subsequently disposes of the licence, company G's acquisition of the licence is to be treated as company R's acquisition of it.^F1

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

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

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