Schedule 9: Taxation provisions relating to nuclear transfer schemes Part 3 – Transfers relating to relevant site licensees
555.Part 3 ensures that certain tax provisions concerned with chargeable gains and intangible assets apply in a tax neutral way, on that occasion and subsequently, where a company becomes a relevant site licensee company, as defined in section 27 of the Act. The provisions in question relate to ‘degrouping’ adjustments (where a company leaves a group) and to the computation of the gain or loss on the transferor or transferee where shares in the ‘relevant site licensee’ are transferred.
556.Paragraph 28(1) sets out the scope of the paragraph. It is concerned with the case where a subsidiary of the NDA becomes a “relevant site licensee” company.
557.Paragraph 28(2) and (3) provide that the relevant site licensee is to be treated as continuing to be in its original (NDA) group for chargeable gains purposes (1992 Act), intangible assets gains and losses purposes (Schedule 29 to the Finance Act 2002) and the exemptions from degrouping charges provided in this Schedule. This means in particular that no degrouping computation would be needed either when the NDA subsidiary leaves the NDA group on becoming a relevant site licensee company or when that company resumes its membership of the NDA group on ceasing to be such a company.
558.Paragraph 28(4) provides that the definitions of groups for chargeable gains purposes (1992 Act), and intangible assets gains and losses purposes (Schedule 29 to the Finance Act 2002) are to apply for the respective purposes of the paragraph.
559.Paragraph 29 allows for the transfers of relevant site licensee companies to or from the NDA, or between one contracting group and another, to be at such a price that neither a gain nor a loss arises for the purposes of capital gains. The overall effect of paragraph 29 is that the transfer of site license companies between different owners (for instance at the beginning and end of a managing contract) is tax neutral.
560.Paragraph 30 adopts the definition of relevant site licensee in section 27.