Part G
Avoidance and non-market transactions
Avoidance: specific
GB 3Arrangements for carrying forward loss balances: companies’ ownership
This section applies when—
- a share in a company (the loss company) or another company has been subject to an arrangement, including an arrangement directly or indirectly altering rights attached to the shares; and
- the arrangement allows the loss company to meet the requirements of section IA 5(2) and (3) (Restrictions on companies’ loss balances carried forward: continuity of ownership); and
- a purpose of the arrangement is to defeat the intent and application of sections IA 5 and IP 3 (Ownership continuity breach: tax loss components of companies carried forward).
The loss company is treated as not meeting the requirements of section IA 5(2) and (3) in relation to the share.
Compare
- 2004 No 35 s GC 2
Notes
- Section GB 3 heading: replaced (with effect on 1 April 2020), on , by section 75(1) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
- Section GB 3(1)(b): amended (with effect on 1 April 2020), on , by section 75(2) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).
- Section GB 3(1)(c): amended (with effect on 1 April 2020), on , by section 111 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
- Section GB 3(2): amended (with effect on 1 April 2020), on , by section 75(3) of the Taxation (Annual Rates for 2020–21, Feasibility Expenditure, and Remedial Matters) Act 2021 (2021 No 8).