CG45336 - Group asset transfers: no gain/loss disposals: exceptions: dual resident investing companies: REITs: assets acquired on exercise of option

TCGA92/S171 (2) (d)

The no gain/no loss rule does not apply to a disposal on or after 1 April 1987 to a dual resident investment company within ICTA88/S404. This exception in TCGA92/S171 (2)(d) was introduced as part of a package of measures designed to prevent exploitation of the tax reliefs available to dual resident companies. Further instructions on dual resident investing companies are at CT34500+.

TCGA1992/S171 (2) (da)

The no gain/no loss rule does not apply to a disposal by or to a Real Estate Investment Trust (REIT). This exception applies to a single company REIT that is the head of a CG group. See GREIT05020.

In a group REIT the tax exempt activities take place within a separate group for CG purposes. The no gain/no loss rule will apply to disposals within the separate groups. See GREIT05030.

Companies and groups were able to enter the REIT regime from 1 January 2007.

TCGA1992/S171 (2) (db)

The no gain/no loss rule does not apply to a disposal that arises from the exercise of an option that was granted when the companies were not members of the same CG group. Therefore the normal rule for the disposal on the exercise of an option at TCGA1992/S144 applies. See CG12313+.

This applies to an exercise of an option on or after 6 March 2007.