IE 5Applying the continuity provisions when companies amalgamate

1. The provisions of this Act apply as if the amalgamated company did not exist separately before amalgamation, and was instead the amalgamating companies with the same holders of shares and options over shares, each with the same number and class of shares and options over shares, as they held in the amalgamating company, to determine whether a tax loss or loss balance,—

2. may be used or is carried forward under sections IA 3 and IA 4 (which relate to the general use of tax losses):
3. may be subtracted from the net income of another company under section IC 5 or IQ 4 (which relate to a company’s use of another company’s loss, including foreign losses):
4. in the case of a group company, may be subtracted from the net income of the amalgamated company under section IC 5 or IQ 4.