Commentary

D2.442 Disposal that is referable to pre-entry assets

Corporate tax
Corporate tax | Commentary

D2.442 Disposal that is referable to pre-entry assets

Corporate tax | Commentary

D2.442 Disposal that is referable to pre-entry assets

The rules in this article were repealed in relation to the set off of pre-entry losses on or after 19 July 2011, subject to transitional rules (see D2.414). Prior to 19 July 2011, the rules in this article applied only where the loss buying rules (D2.402–D2.406) did not apply (ie where there was no arrangement for avoiding tax, eg on a merger or takeover).

When there is a part disposal of a pooled asset, is necessary firstly to distinguish between the part of the pooled asset which is represented by pre-entry assets, and the part which is not.

When there is a part disposal of a pooled asset and only part of the pooled asset is referable to a pre-entry asset the part disposal is essentially 'matched' with post-entry assets first. Any excess is then treated as a disposal of

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