Section 799 — Corporation Tax Act 2009: Disregard of payments between group members for reliefs

Disregard of payments between group members for reliefs 799 1 If a payment for group roll-over relief or for the reallocation of a degrouping charge does not exceed the amount of the relevant relief—

a it is not taken into account in calculating profits or losses of either of the companies involved for corporation tax purposes, and b it is not a distribution for any of the purposes of the Corporation Tax Acts.

2 A payment for group roll-over relief is a payment made—

a in connection with a claim for relief under Chapter 7 (roll-over relief in case of realisation and reinvestment) made because of—

i section 777 (relief on realisation and reinvestment: application to group member), or ii section 779 (rules that apply to cases within section 778(1)),

b by the company whose proceeds of realisation are reduced as a result of the claim, c to a company whose acquisition costs are reduced (in a case within section 777) or the tax written-down value of whose assets is reduced (in a case within section 779) as a result of the claim, and d in accordance with an agreement between those companies in connection with the claim.

3 A payment for the reallocation of a degrouping charge is a payment made—

a in connection with an election under section 792 (reallocation of charge within group),

b by the company to which the chargeable realisation gain accrues, c to the company to which as a result of the election the whole or part of that gain is treated as accruing, and d in accordance with an agreement between those companies in connection with the election.

4 In the case of a payment in connection with such a claim for relief as is mentioned in section 777(3), the amount of the relevant relief is the amount of the reduction, as a result of the claim, in the acquisition costs of the company to which the payment is made.

5 In the case of a payment in connection with such a claim for relief as is mentioned in section 778(4), the amount of the relevant relief is the amount of the reduction, as a result of the claim, in the tax written-down value of the assets of the company to which the payment is made.

6 In the case of a payment in connection with an election under section 792, the amount of the relevant relief is the amount treated as a result of the election as accruing to the company to which the payment is made.