Section FM 21 — Income Tax Act 2007: Property transfers when companies leave consolidated groups

FM 21 Property transfers when companies leave consolidated groups When this section applies (1) This section applies to the extent to which a transfer of property has not previously been taken into account in the calculation of a consolidated group’s taxable income under sections FM 8 to FM 13 , or FM 15 to FM 20 and FM 23 when— (a) a company leaves a consolidated group, but not through liquidation; and (b) the company holds property that has at any time been transferred between companies in the same consolidated group; and (c) sections FM 15 , or FM 17 to FM 20 applied to the transfer of the property. Disposal and acquisition at market value (2) The company is treated as disposing of the property immediately before it leaves the consolidated group to a person not associated with it, and reacquiring it at that time at its market value. Market value at time of transfer (3) If the item of property is part of or is absorbed into some other property, or its market value cannot be separately identified, the company is treated as disposing of and reacquiring the property at its market value at the time of the transfer under the relevant provision referred to in subsection (1)(c). If the property is transferred more than once, the time of disposal and reacquisition is the date of the latest transfer at which its market value can be determined. Defined in this Act: associated person , company , consolidated group , liquidation , market value , taxable income , Compare: 2004 No 35 s FD 10(6), (7)