Section 625A Transitional provisions in respect of section 625
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Amendments
Section 625A inserted by Finance Act 1999 section 56(1)(e) as on and from 11 February 1999.
(1) In this section―
"the subsidiary" and "the chargeable company" have the same meanings, respectively, assigned to them by 625(1);
"the new definition" means section 616 as amended by section 56 of the Finance Act, 1999, and "the old definition" means that section as it had effect on the 10th day of February, 1999.
When do these transitional provisions apply?
(1) This section applies where the replacement, from 11 February 1999, of the old definition of a chargeable gains group (as consisting only of Irish resident companies) by the new definition of a chargeable gains group (as capable of including EU re...
(2) Where―
(a) on the 11th day of February, 1999, the subsidiary company ceases, for the purposes of section 616 and the provisions of this Part subsequent to that section, to be a member of a group by reason only of the substitution for the old definition of the new definition, and
(b) in consequence of ceasing to be such a member the chargeable company would, apart from this section, be treated by virtue of section 625(2) as selling shares in the subsidiary at any time,
the chargeable company shall not be treated as selling the shares at that time unless the conditions in subsection (3) become satisfied assuming for that purpose that the old definition applies.
What happens when a subsidiary ceases to be a group member under this section?
(2) Where you are a subsidiary that ceases to be a group member in accordance with (1), the parent (the chargeable company) is deemed to have disposed its shares in your company at the time those shares were acquired under the share for share exchang...
(3) The conditions referred to in subsection (2) are―
(a) that for the purposes of section 625 the subsidiary ceases at any time (in this subsection referred to as "the relevant time") to be a member of the group referred to in subsection (2)(a), and
(b) that the time of the earlier occasion referred to in section 625(1)(a) fell within the period of 10 years ending with the relevant time.
