Schedule 7 – Transfer Schemes: tax
949.Schedule 7 makes provision relating to the tax implications of transfers of property, rights or liabilities under transfer schemes made under sections 51 or 65 and Schedule 6. It ensures that unwanted tax charges and reliefs do not arise as a consequence of such schemes.
950.Paragraph 1 introduces the Schedule.
951.Paragraph 2 defines the key concepts “transfer”, “transfer scheme”, “transfer between bodies” and “transfer to government” used elsewhere in the Schedule.
952.Paragraph 3 contains other definitions used elsewhere in the Schedule.
953.Paragraph 4 provides continuity of trade in connection with the computation of profits and losses for purposes of corporation tax in respect of periods wholly partly after the commencement of a transfer scheme.
954.Paragraphs 5 and 6 provide for continuity of treatment for capital allowances in respect of property transferred under a transfer scheme.
955.Paragraph 7 provides that, in respect of property transferred under a transfer scheme, for capital gains purposes, the transfer is to be taken as being for a consideration such that no gain nor loss accrues.
956.Paragraph 8 provides that section 30 of the Taxation of Chargeable Gains Act 1992 shall be disregarded in respect of a transfer made under a transfer scheme.
957.Paragraph 9 makes a consequential amendment to section 35(3)(d) of the Taxation of Chargeable Gains Act 1992.
958.Paragraph 10 ensures continuity of treatment for transfers made under a transfer scheme for the purposes of intangible assets.
959.Paragraph 11 ensures continuity of treatment for transfers made under a transfer scheme for the purposes of loan relationships.
960.Paragraph 12 ensures that no stamp duty liability arises on a transfer made under a transfer scheme.