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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
Updated
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Company reconstructions: company: TCGA92/S139 does not apply

TCGA92/S139

If the anti-avoidance provisions of TCGA92/S139 (5) prevent Section 139 from applying

  • the transfer of assets is treated as an ordinary disposal
  • refer any objection with your file to Capital Gains Technical Group
  • Section 139(6) allows you to make an assessment on the transferee company if the transferor company has been wound up before the gains have been assessed. Capital Gains Technical Group will advise on the form of the assessment.

TCGA92/S139 (7) allows you to recover unpaid tax from the transferee company, or further transferee company if there has been a later intra-group transfer of the assets. The relevant conditions are that

  • Section 139(5) has prevented Section 139 from applying
  • tax has been assessed on the transferor company or the transferee company under Section 139(6) if the transferor company has been wound up
  • the tax remains unpaid six months after it became payable.

Capital Gains Technical Group will advise on the form of the assessment.