Section 195D — Taxation of Chargeable Gains Act 1992: Company that receives mixed consideration: N does not exceed C

Company that receives mixed consideration: N does not exceed C 195D 1 This section applies to a mixed-consideration swap if—

a the no gain/no loss amount (“N”) of the company that receives the mixed consideration (“company R”) does not exceed b the amount of non-licence consideration (“C”) which company R receives.

2 As regards the licence, or each licence, which company R acquires, company R is to be treated as if it had acquired the licence for nil consideration.

3 In a case where company R disposes of only one licence, company R is to be treated as if, on the disposal of the licence, there had arisen a gain of— C - N 4 In a case where company R disposes of two or more licences, as regards each licence disposed of, company R is to be treated as if, on the disposal of the licence, there had arisen a gain of— ( C - N ) × D TD where— D is the value of the licence disposed of, and TD is total value of all the licences disposed of.