SCHEDULES
SCHEDULE 6Capital Gains : Election for Pooling
Transfers on a no gain/no loss basis
9
1
This paragraph applies in any case where—
a
a company (in this paragraph referred to as " the first company ") disposes of securities to another company, (in this paragraph referred to as " the second company ") which has made an election under this Schedule, and
b
the disposal is one to which section 267 or section 273 of the Taxes Act applies (transfers on a company reconstruction etc. and within a group of companies to be on a no gain/no loss basis), and
c
the disposal by the first company takes place outside the qualifying period.
2
Nothing in this paragraph affects the operation of paragraph 2 of Schedule 13 to the 1982 Act, but paragraph 3 of that Schedule shall have effect subject to the provisions of this Schedule.
3
On the disposal referred to in sub-paragraph (1) above (which is the initial disposal within the meaning of the said paragraph
a
the consideration for the disposal shall become part of the second company's indexed pool of expenditure ; and
b
so much of that consideration as does not consist of the indexation allowance on the disposal shall become part of the second company's unindexed pool of expenditure.