FO 17 Land
When this section applies

(1)

This section applies when land belonging to an amalgamating company passes to the amalgamated company on a resident’s restricted amalgamation.

Disposal at market value

(2)

The amalgamating company is treated as having disposed of the land to the amalgamated company at the market value of the land at the date of the amalgamation if—

(a)

the land is not revenue account property of the amalgamating company, and the disposal of the land would give rise to income for the amalgamated company under any of sections CB 6A to CB 14 (which relate to the disposal of land):

(b)

the land is revenue account property of the amalgamating company but not merely because of the 2-year bright-line test or the 10-year rule in any of sections CB 6A, CB 9 to CB 11, and CB 14, and the land is, or may be, revenue account property of the amalgamated company because of the 2-year bright-line test or the 10-year rule in any of sections CB 6A, CB 9 to CB 11, and CB 14.

Disposal of land within 2-year bright-line test or 10-year rule

(3)

If the land is, or may be, revenue account property of the amalgamating company because of the 2-year bright-line test or the 10-year rule in any of sections CB 6A, CB 9 to CB 11, and CB 14, and the amalgamated company disposes of the land within the relevant 2-year or 10-year period after the amalgamating company acquired it, an amount derived from the disposal is income of the amalgamated company under whichever is applicable of sections CB 6A to CB 14.

Defined in this Act: amalgamated company, amalgamating company, amount, income, land, resident’s restricted amalgamation, revenue account property

Compare: 2004 No 35 s FE 6(3A), (3B)

Section FO 17(2) heading: replaced (with effect on 1 October 2015), on 16 November 2015, by section 17 of the Taxation (Bright-line Test for Residential Land) Act 2015 (2015 No 111).

Section FO 17(2): replaced (with effect on 1 October 2015), on 16 November 2015, by section 17 of the Taxation (Bright-line Test for Residential Land) Act 2015 (2015 No 111).

Section FO 17(3) heading: replaced (with effect on 1 October 2015), on 16 November 2015, by section 17 of the Taxation (Bright-line Test for Residential Land) Act 2015 (2015 No 111).

Section FO 17(3): replaced (with effect on 1 October 2015), on 16 November 2015, by section 17 of the Taxation (Bright-line Test for Residential Land) Act 2015 (2015 No 111).