863. Company ceasing to be a member of a group.

A degrouping charge may arise on a company ceasing to be a member of a capital gains tax group. The relevant provisions are detailed and complex but very generally if the departing company holds a chargeable asset which it has acquired from another member of the group within the previous six years, the departing company is treated as having disposed of the asset and reacquired it at its market value at the time of that intra-group acquisition1.

Following changes introduced by the Finance Act 2011, where a transferee company ceases to be a member of the group as a consequence