Section CV 3 — Income Tax Act 2007: Consolidated groups: arrangement for disposal of shares

CV 3 Consolidated groups: arrangement for disposal of shares When this section applies (1) This section applies for the purposes of section FM 23 (Arrangements for disposal of shares) when shares in company A that is part of a consolidated group are disposed of by another company for consideration that is less than would have been received in an arm’s length transaction because of a reduction in the value of company A’s assets. Income (2) The amount that would have been received in an arm’s length transaction is treated as income derived by the other company at the time of disposal. Defined in this Act: amount , company , consolidated group , income , Compare: 2004 No 35 s FD 10(8)