The rules in this article apply only where the loss buying rules (¶Ù2.402–D2.404) do not apply. They normally only apply in cases where there is no arrangement for avoiding tax, eg on a merger or takeover.
Assets treated as a single asset
Where a gain is realised by a company on the disposal of an asset which it is deemed to own (as opposed to actually own) at the time it joined the group, the set-off of any pre-entry loss against such gains is restricted1. The restriction broadly operates so as to allow set-off against the gain that is attributable to the assets actually held at the time of joining the group.
This provision applies to gains arising on the disposal of an asset which is treated as:
- Ìý
(a)ÌýÌýÌýÌý a single asset, but which comprises assets only some of which were held immediately before:
- Ìý
–ÌýÌýÌýÌý the date on which the company joined the group (in relation to the set-off of realised pre-entry losses), or
- Ìý
–ÌýÌýÌýÌý the company
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Web page updated on 17 Mar 2025 17:11