Section 782A | Company leaving group because of relevant share disposal

(1)Section 780 does not apply if a company ceases to be a member of a group because of a relevant disposal of shares by another company.

(2)A disposal of shares by a company is “relevant” if—

(a)the company would not be chargeable to corporation tax in respect of any gain accruing on the disposal by reason of the exemption conferred by paragraph 1 of Schedule 7AC to TCGA 1992 (assuming the company was within the charge to corporation tax), and

(b)the disposal is not part of an arrangement under which the recipient of the shares is to dispose of any of them to another person.

(3)For the purposes of subsection (2)(a) ignore paragraph 6 of Schedule 7AC to TCGA 1992 (cases in which exemptions do not apply).