Groups: group relief: arrangements, effect 1
CTA10/S154(3) effect 1
Effect 1 in CTA10/S154(3) is that there are arrangements in place of any kind (whether or not in writing) whereby a company, or a successor to it , could:
- cease to be a member of the same group as a second company,
- become a member of the same group as a third company.
One company is a successor of another if it carries on, in whole or in part, a trade which the other company has ceased to carry on in certain circumstances where a balancing charge would not be chargeable on the ceasing company – CTA10/S156(3). The circumstances are where:
- CTA10/Part 22/Chapter 1 (transfers of trade without a change of ownership) applies in relation to the companies as, respectively, the successor and the predecessor within the meaning of that Chapter, or
- the two companies are connected with each other in accordance with CTA10/S1122.
‘Third company’ (CTA10/S154(4))
This means a company which, ignoring the effect of any arrangements is not a member of the same group as the company in CTA10/S154 to which the arrangements refer.