Section FO 13 — Income Tax Act 2007: Financial arrangements: resident’s restricted amalgamation, calculation method unchanged

FO 13 Financial arrangements: resident’s restricted amalgamation, calculation method unchanged When this section applies (1) This section applies, despite sections EW 42 and GB 21 (which relate to non-market transfers of financial arrangements) in an income year in which the obligations that an amalgamating company has under a financial arrangement pass to the amalgamated company on a resident’s restricted amalgamation when— (a) the method of calculating income and expenditure from the financial arrangement does not change after the amalgamation; and (b) section FO 12 does not apply. Calculating base price adjustment (2) The amalgamating company is treated as having disposed of the financial arrangement. In calculating the base price adjustment, the consideration is the amount that would fairly and reasonably represent the income or expenditure that the amalgamating company would have derived or would have incurred in the income year if the amalgamation had not taken place. Defined in this Act: amalgamated company , amalgamating company , amalgamation , consideration , dispose , financial arrangement , income , income year , resident’s restricted amalgamation , Compare: 2004 No 35 ss FE 6(5), (7) , FE 7(1)(b), (3)