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HMRC internal manual

Capital Gains Manual

Depreciatory intra-group dividends: exceptions

TCGA92/S31 (9)

TCGA92/S31 does not apply where the asset which was the subject of the asset transaction is

  • held on trading account by the company which disposed of or revalued it in the asset transaction
  • of such a nature that a disposal of it could give rise to neither a chargeable gain nor an allowable loss
  • held on trading account by the company which owned it immediately before the Section 30 disposal.

These exceptions are listed in Section 31(9).

Finance Act 2011 introduced a new Targeted Anti-Avoidance Rule for disposals of shares and securities by companies on or after 19 July 2011. See CG48500+.