Section 154 | Arrangements for transfer of member of group of companies etc

(1)This section applies if, apart from this section, one company (“the first company”) and another company (“the second company”) would be members of the same group of companies.

(2)For the purposes of this Part the companies are not members of the same group of companies if—

(a)one of the companies has surrenderable amounts for an accounting period (“the current period”), and

(b)arrangements within subsection (3) are in place.

(3)Arrangements are within this subsection if they have any of the following effects (but see sections 155A and 155B).^F1F2

Effect 1At some time during or after the current period, the first company or any successor of it—

(a)could cease to be a member of the same group of companies as the second company, and

(b)could become a member of the same group of companies as a third company (see subsection (4)).

Effect 2At some time during or after the current period a person (other than the first or second company) has or could obtain, or persons together (other than those companies) have or could obtain, control of the first company but not of the second company.

Effect 3At some time during or after the current period, a third company could start to carry on the whole or a part of a trade that at a time during the current period is carried on by the first company and could do so—

(a)as the successor of the first company, or

(b)as the successor of another company which is not a third company and which started to carry on the whole or a part of the trade during or after the current period.

(4)A “third company” means a company that is not, apart from any arrangements within subsection (3), a member of the same group of companies as the first company.