Section 195E — Taxation of Chargeable Gains Act 1992: Company that gives mixed consideration

Company that gives mixed consideration 195E 1 This section applies to a mixed-consideration swap—

a whatever the no gain/no loss amount (“N”) of the company that gives the mixed consideration (“company G”),

and b whatever the amount of the non-licence consideration (“C”) which company G gives.

2 In a case where company G acquires only one licence, company G is to be treated as if it had acquired the licence for a consideration of— N + C 3 In a case where company G acquires two or more licences, as regards each licence acquired, company G is to be treated as if it had acquired the licence for a consideration of— ( N + C ) × A TA where— A is the value of the licence acquired, and TA is total value of all the licences acquired.

4 The disposal by company G of a licence under the swap is to be taken to be one on which neither a gain nor a loss accrues.

5 But (despite subsection (4)), the disposal by company G is not a no gain/no loss disposal for the purposes of section 56.

6 For the purposes of the application of sections 53 and 54, any enactment is to be disregarded insofar as it provides that, if the other company which acquires a licence under the swap (“company R”) subsequently disposes of the licence, company G's acquisition of the licence is to be treated as company R's acquisition of it.

7 In this section the reference to the no gain/no loss amount of company G is a reference to—

a in a case where company G disposes of only one licence, company G's no gain/no loss amount in relation to that disposal, or b in a case where company G disposes of two or more licences, the aggregate of company G's no gain/no loss amounts in relation to all of those disposals.