Section 632 | Transferee leaving group because of exempt distribution

(1)This section applies if—

(a)the transferee ceases to be a member of the relevant group just because of a distribution which is exempt as a result of section 1075 of CTA 2010 (exempt distributions), and

(b)there is a chargeable payment within the meaning of section 1088(1) of CTA 2010 (chargeable payments connected with exempt distributions) within 5 years after the making of the distribution.

(2)... This Part applies as if—

(a)the transferee had assigned its rights and liabilities under the relevant derivative contract immediately before that chargeable payment was made,

(b)the assignment had been for consideration of an amount equal to their fair value immediately before the transferee ceased to be a member of the relevant group, and

(c)the transferee had immediately reacquired them for consideration of the same amount.

(3)Repealed

(4)Repealed