Finance Act 1991

78 Sharing of transmission facilities.U.K.

(1)This section applies to any agreement relating to the sharing of transmission facilities—

(a)to which the parties are national broadcasting companies,

(b)which is entered into on or after the day on which this Act is passed and before 1st January 1992 or such later date as may be specified for the purposes of this paragraph by the Secretary of State, and

(c)in relation to which the Secretary of State has certified that it is expedient that this section should apply.

(2)Where under an agreement to which this section applies one party to the agreement disposes of an asset to another party to the agreement, both parties shall be treated for the purposes of corporation tax on chargeable gains as if the asset acquired by the party to whom the disposal is made were acquired for a consideration of such amount as would secure that on the other’s disposal neither a gain nor a loss would accrue to that other.

(3)Where under an agreement to which this section applies one party to the agreement disposes of an asset to another party to the agreement and the asset is one which the party making the disposal acquired on a part disposal by the party to whom the disposal under the agreement is made, then in applying subsection (2) above—

(a)section 35 of the M1Capital Gains Tax Act 1979 shall be deemed to have had effect in relation to the part disposal with the omission of subsection (4),

(b)the amount or value of the consideration for the part disposal shall be taken to have been nil, and

(c)if the disposal under the agreement is one to which section 96(2) of the M2Finance Act 1988 applies, the market value of the asset on 31st March 1982 shall be taken to have been nil.

(4)Where under an agreement to which this section applies one party to the agreement disposes of machinery or plant to another party to the agreement, the M3Capital Allowances Act 1990 shall apply—

(a)in the case of the party making the disposal, as if the disposal value of the machinery or plant for the purposes of section 24 of that Act were equal to the capital expenditure incurred by that party on its provision, and

(b)in the case of the party to whom the disposal is made, as if the amount expended by that party in acquiring the machinery or plant were equal to the capital expenditure so incurred.

(5)In subsection (4) above, references to machinery or plant include a share in machinery or plant.

(6)In section 68 of the M4Finance Act 1985 (modification of indexation allowance) in subsection (7A) (list of no gain/no loss provisions) the word “and at the end of paragraph (f) shall be omitted and after paragraph (g) there shall be inserted—

“(h)section 78(2) of the Finance Act 1991.”

(7)In Schedule 8 to the M5Finance Act 1988 (rebasing to 1982) in paragraph 1(3) (list of no gain/no loss provisions) the word “and at the end of paragraph (g) shall be omitted and after paragraph (h) there shall be inserted “and

(i)section 78(2) of the Finance Act 1991.”

(8)In this section, “national broadcasting company means a body corporate engaged in the broadcasting for general reception by means of wireless telegraphy of radio or television services or both on a national basis.