860. Relief on transfers within a group.

Where a company ('company A') disposes1 of an asset to another company ('company B') at a time when both companies are members of the same group2, and specified conditions are met, company A and company B are treated for the purposes of corporation tax on chargeable gains as if the asset were acquired by company B for a consideration of such amount as would secure that neither a gain nor a loss would accrue to company A on the disposal3.

The specified conditions are that:

  1.  

    (1)     company A is resident4 in the United Kingdom at the time of the disposal,