Part 4 U.K.Pension schemes etc

Chapter 3U.K.Payments by registered pension schemes

185HDisposal of interest in vehicleU.K.

(1)This section applies for the purposes of section 185F where the pension scheme or another vehicle ceases to hold all or part of an interest in a vehicle through which the pension scheme holds the taxable interest indirectly.

(2)The pension scheme is to be treated as disposing of the interest in the vehicle through which the pension scheme holds the taxable interest indirectly.

(3)The amount of the gain or loss treated as accruing to the pension scheme on the disposal of the interest in the vehicle is the difference between—

(a)the deemed consideration received for the disposal of the interest, and

(b)the deemed consideration given for the interest.

(4)The deemed consideration received for the disposal of the interest in the vehicle is the difference between—

(a)the market value of the taxable interest at the time of the disposal, apportioned to the pension scheme in accordance with subsection (5) immediately before that time, and

(b)the market value of the taxable interest at the time of the disposal, apportioned to the pension scheme in accordance with subsection (5) immediately after that time.

(5)An amount mentioned in subsection (4) is to be apportioned to the pension scheme by applying paragraphs 41 to 43 of Schedule 29A to it as if it were the total taxable amount in relation to an unauthorised payment treated as made—

(a)by the pension scheme,

(b)in connection with the acquisition of the taxable interest, and

(c)at the time at which the amount is to be apportioned to the pension scheme in accordance with that subsection.

(6)The deemed consideration given for the interest in the vehicle is—

(a)the total amount of unauthorised payments treated as made by the pension scheme in respect of the taxable interest up to the time of the disposal, less

(b)the amount found under paragraph (a) to the extent that it has already been taken into account in calculating the gains or losses accruing to the pension scheme in respect of the taxable interest by virtue of section 185G or this section.]