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 or 2017–18 income years ceases to be an LTC (the cessation)—

(a)

on the first day of application for 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; and

(b)

because of an amendment to LTC-related provisions, in section 288 of that Act.

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).

Section HZ 4E(1): replaced, on 29 March 2018 (with effect on 1 April 2017), by section 139 of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).