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CV 3: Consolidated groups: arrangement for disposal of shares
or “Rules for selling shares within a group of companies”
You could also call this:

“New company's income from old companies' actions after joining together”

When companies join together, it’s called an amalgamation. After this happens, the new company might get money because of something the old companies did or didn’t do. If this happens, you need to know two things:

First, the new company gets this money. It doesn’t go to the old companies that joined together.

Second, if this money would have been income for one of the old companies before they joined together, it’s also income for the new company. The new company must count it as income in the year they get the money.

This rule is linked to another part of the law called section FO 7, which talks about income after companies join together.

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Next up: CV 5: Statutory producer boards

or “Rules for statutory producer boards on handling levies as income”
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Part C Income
Income specific to certain entities

CV 4Amalgamated companies: amount derived after amalgamation

  1. This section applies for the purposes of section FO 7 (Income derived after amalgamation) when an amount is derived by the amalgamated company after an amalgamation as a result of something that an amalgamating company did or did not do.

  2. The amount is income of the amalgamated company in the income year in which it is derived if it would have been income of an amalgamating company but for the amalgamation.

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