Commentary

D2.311 Group capital gains—Qualifying conditions for intra-group transfers

Corporate tax
Corporate tax | Commentary

D2.311 Group capital gains—Qualifying conditions for intra-group transfers

Corporate tax | Commentary

D2.311 Group capital gains—Qualifying conditions for intra-group transfers

Where the qualifying conditions are met, then subject to the exceptions listed at D2.314, all intra-group transfers of capital assets are deemed to take place not at market value or for the actual sale price, but for a consideration that gives rise to neither a gain nor loss to the transferor company1.

The conditions for intra-group transfers of assets to be treated as no gain, no loss disposals are that:

  1.  

    (a)     the transferor company is UK resident at the time of disposal, or the asset is a 'chargeable asset' in the hands of the transferor immediately before the transfer; and

  2.  

    (b)     the transferee company is UK resident at the time of disposal, or the asset is a 'chargeable asset' in the hands of the transferee immediately after the transfer

For (a) and (b) above, an asset is a 'chargeable asset' in the

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