CG45455 - Charge on companies leaving groups: exclusions: associated companies leaving same time

TCGA92/S178 (2) & TCGA92/S179 (2)

An important exception from the degrouping charge in TCGA92/S178 (2) and TCGA92/S179 (2) concerns the case where associated companies leave a group at the same time. The exception is that where two or more associated companies cease to be members of the group at the same time, the degrouping charge does not apply to the acquisition of an asset by one from another of those associated companies. For this purpose, the definition of `associated companies' in TCGA92/S178 (8)(a) and TCGA92/S179 (10)(a) is that two or more companies are associated companies if, by themselves, they would form a group of companies. See CG45456 concerning the time at which companies must be associated for these purposes.

See CG45456a for our view of how to identify “associated companies”.