OA 9General treatment of credits and debits on resident’s restricted amalgamation

1. This section applies—

2. on a resident’s restricted amalgamation, in relation to an amalgamated company and a memorandum account, if an amalgamating company ends its existence on the amalgamation and, at the time of the amalgamation, the amalgamating company maintains 1 or more memorandum accounts of the type referred to in sections OA 2(1)(a) to (d), and (f); and
3. for the purposes of determining whether a credit or debit arises in the same type of account of the amalgamated company.

4. A credit or debit recorded in the memorandum account of the amalgamating company before the date of the amalgamation is treated as if it were recorded in the same type of account of the amalgamated company on the date it was recorded in the amalgamating company’s account with effect from the time of the amalgamation.

5. For the purposes of section OA 8(7) and (8), in determining at a time after the amalgamation whether continuity of shareholding exists for the credit or debit in the memorandum account, the amalgamated company is treated for all times before the amalgamation as if—

6. it did not separately exist; and
7. it were instead the amalgamating company, with the same shareholders and option holders.

8. For the purposes of determining the credits and debits in the memorandum account of an amalgamating company, sections GB 34 and GB 41 (which relate to arrangements to defeat the application of certain provisions) apply, modified as necessary.

Compare

• 2004 No 35 ss ME 29(1)(a), MF 16(1)(a), MG 17(1)(a), MI 13

Notes

• Section OA 9(3): amended (with effect on 1 April 2008), on 30 March 2022, by section 136 of the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Act 2022 (2022 No 10).
• Section OA 9(4): amended, on 1 July 2012 (applying for income years beginning on or after that date), by section 86(1) of the Taxation (International Investment and Remedial Matters) Act 2012 (2012 No 34).