CG53235 - Substantial shareholdings exemption: interaction with other legislation - degrouping - time of deemed disposal and reacquisition

TCGA92/SCH7AC/PARA38

Paragraph 38 Schedule 7AC TCGA 1992 modifies the way that the degrouping legislation in section 179 TCGA 1992 operates (see CG45401 onwards). It applies if a gain on a hypothetical disposal of the asset that is the subject of the degrouping charge immediately before the degrouping event would have been exempted by Part 1 of Schedule 7AC TCGA 1992. When it applies it provides that the deemed sale and reacquisition of the asset (under section 179(3) or (6) TCGA 1992) had occurred immediately before the degrouping event - not immediately after the asset was transferred.