Section 496 | Parties to capital market arrangements ^F1

(1)The Commissioners may make regulations entitling—^F1

(a)a UK group company which has a liability to corporation tax as a result of this Part and which is a party to a capital market arrangement, and^F1

(b)another UK group company,^F1

to make a joint election transferring the liability to the other UK group company.

(2)The regulations may include provision—^F1

(a)specifying other conditions that must be met for an election to be made,^F1

(b)requiring an election to be made on or before a particular time (for example, before the accounting period for which the liability arises),^F1

(c)authorising or requiring an officer of Revenue and Customs (on the exercise of a discretion or otherwise) to accept or reject an election,^F1

(d)authorising or requiring an officer of Revenue and Customs (on the exercise of a discretion or otherwise) to revoke an election previously in force and dealing with the effect of the revocation, and^F1

(e)dealing with the effect of the transfer of the corporation tax liability on any other liabilities that relate to the transferred corporation tax liability.^F1

(3)In this section “capital market arrangement” has the same meaning as in section 72B(1) of the Insolvency Act 1986 (see paragraph 1 of Schedule 2A to that Act).^F1