HZ 4E Transition out of LTC regime for Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017
When this section applies

(1)

This section applies when an entity that is a look-through company (an LTC) at the end of the 2016–17 income year ceases to be an LTC because of an amendment to LTC-related provisions, in section 288 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (the cessation).

Exemption

(2)

Section HB 4(6) (General provisions relating to disposals) does not apply to the cessation.

Company steps into place

(3)

An entity that ceases to be an LTC is treated as having, as a company, the tax position it has, ignoring section HB 1(4) (Look-through companies are transparent), immediately before it ceases, and the owners are treated as not having that tax position.

Defined in this Act: company, income year, look-through company, tax position

Section HZ 4E: inserted, on 1 April 2017, by section 145 of the Taxation (Annual Rates for 2016–17, Closely Held Companies, and Remedial Matters) Act 2017 (2017 No 14).