Section FO 15 — Income Tax Act 2007: Financial arrangements: amalgamation other than resident’s restricted amalgamation

FO 15 Financial arrangements: amalgamation other than resident’s restricted amalgamation When this section applies (1) This section applies when an obligation that an amalgamating company has in relation to a financial arrangement passes to the amalgamated company on an amalgamation that is not a resident’s restricted amalgamation. Market value for amalgamating company (2) The amalgamating company is treated as having disposed of the financial arrangement or relieved itself of the obligations immediately before the amalgamation. The consideration for the disposal is the market price for assuming the obligations at the time of the amalgamation. Market value for amalgamated company (3) The amalgamated company is treated as having acquired the financial arrangement or assumed the obligations immediately after the amalgamation. The consideration for the acquisition is the market value of the property at the time of the amalgamation. Defined in this Act: amalgamated company , amalgamating company , amalgamation , consideration , financial arrangement , market value , resident’s restricted amalgamation , Compare: 2004 No 35 s FE 5