Section 175: Replacement of business assets by members of a group., Taxation of Chargeable Gains Act 1992

Subject to subsection (2) below, for the purposes of sections 152 to 158 all the trades to which this section applies carried on by members of a group of companies shall, for the purposes of corporation tax on chargeable gains, be treated as a single trade ... .

The trades to which this section applies are—

any trade carried on by a company that is resident in the United Kingdom, and

any trade carried on in the United Kingdom through a permanent establishment by a company not so resident.

Subsection (1) above does not apply where so much of the consideration for the disposal of the old assets as is applied in acquiring the new assets or the interest in them is so applied by a member of the group which is a dual resident investing company ... and in this subsection "the old assets" and "the new assets" have the same meanings as in section 152.

Section 152 or 153 shall apply where—

the disposal is by a company which, at the time of the disposal, is a member of a group of companies,

the acquisition is by another company which, at the time of the acquisition, is a member of the same group, and

the conditions in subsection (2AA) below are met, and

the claim is made by both companies,

as if both companies were the same person.

Section 152 or 153 shall apply where a company which is a member of a group of companies but is not carrying on a trade—

disposes of assets (or an interest in assets) used, and used only, for the purposes of the trade which (in accordance with subsection (1) above) is treated as carried on by the members of the group which carry on a trade, or

acquires assets (or an interest in assets) taken into use, and used only, for those purposes,

as if the first company were carrying on that trade.

Neither section 152 nor section 153 shall apply if the acquisition of, or of the interest in, the new assets—

is made by a company which is a member of a group of companies, and

is one to which any of the no gain/no loss provisions applies or is one where, by virtue of section 195B, 195C or 195E, neither a gain nor a loss accrues to the person making the disposal.

Section 154(2) applies where the company making the claim is a member of a group of companies—

as if all members of the group for the time being carrying on a trade to which this section applies were the same person, and

in accordance with subsection (1) above, as if all those trades were the same trade;

so that the gain accrues to the member of the group holding the asset concerned on the occurrence of the event mentioned in section 154(2).

Subsection (2) above shall apply where the acquisition took place before 20th March 1990 and the disposal takes place within the period of 12 months beginning with the date of the acquisition or such longer period as the Board may by notice allow with the omission of the words from "or a company" to "the acquisition".

Section 175: Replacement of business assets by members of a group.

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