Section 162B — Taxation of Chargeable Gains Act 1992: Disincorporation relief: assets (including pre-FA 2002 goodwill)

Disincorporation relief: assets (including pre-FA 2002 goodwill) 162B 1 This section applies where—

a a company transfers its business to some or all of the shareholders of the company, and b a claim for disincorporation relief in respect of the transfer has been made under section 58 of the Finance Act 2013.

2 The disposal and acquisition of any qualifying asset of the business included in the transfer is to be deemed to be for a consideration equal to the lower of—

a the sums allowable under section 38 as a deduction in the computation of the gain accruing to the company on the disposal of the asset in question, and b the market value of the asset.

3 In subsection (2) a “ qualifying asset ” means—

a goodwill, or b an interest in land which is not held as trading stock.

4 But subsection (2) does not apply to the goodwill of the business if section 162C applies to it.