Section 782A — Corporation Tax Act 2009: Company leaving group because of relevant share disposal

Company leaving group because of relevant share disposal 782A 1 Section 780 does not apply if a company ceases to be a member of a group because of a relevant disposal of shares by another company.

2 A disposal of shares by a company is “relevant” if—

a the company would not be chargeable to corporation tax in respect of any gain accruing on the disposal by reason of the exemption conferred by paragraph 1 of Schedule 7AC to TCGA 1992 (assuming the company was within the charge to corporation tax),

and b the disposal is not part of an arrangement under which the recipient of the shares is to dispose of any of them to another person.

3 For the purposes of subsection (2)(a) ignore paragraph 6 of Schedule 7AC to TCGA 1992 (cases in which exemptions do not apply).