Section 620 Replacement of business assets by members of group
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Amendments
Section 620 substituted by Finance Act 2001 section 38(1)(f) in relation to cases in which-
(I) either the disposal or acquisition is on or after 15 February 2001, or
(II) both the disposal and acquisition are on or after that date.
In a case to which (I) relates, any question of whether a company was, at the time of the acquisition or disposal corresponding to the disposal or acquisition referred to, a member of a group shall be determined in accordance with section 616 as amended: Finance Act 2001 section 38(2)(b).
(1) For the purposes of this section "old assets" and "new assets" have the same meanings as in section 597.
(2) Subject to subsection (4), for the purposes of section 597 all the trades to which this section applies carried on by members of a group of companies shall be treated as a single trade (except in a case of one member of the group acquiring, or acquiring the interest in, the new assets from another member or disposing of, or disposing of the interest in, the old assets to another member).
How does rollover relief apply within a group?
(2) For the purposes of rollover relief (section 597), all trades carried on by a capital gains tax group are treated as a single trade. Other group members may therefore be treated as having reinvested the disposal proceeds in new assets (to the ext...
(3) This section applies to―
(a) any trade carried on by a company which is resident in the State, and
(b) any trade carried on in the State through a branch or agency of a company which is not so resident.
(4) This section shall not apply unless―
(a) the company disposing of the old assets is resident in the State at the time of the disposal, or the assets are chargeable assets in relation to that company immediately before that time, and
(b) the company acquiring the new assets is resident in the State at the time of acquisition, or the assets are chargeable assets in relation to that company immediately after that time.
