Taxes Consolidation Act 1997 section 619

Disposals or acquisitions outside group

Section 619 sets out the rules for computing capital gains or losses where an asset, acquired by a member of a group of companies from another group member, is eventually disposed of outside the group.

• Where an asset acquired within a group at no gain/no loss is disposed of outside the group at a loss, the loss must be restricted by the total capital allowances claimed on the asset by all group members who owned it.
• The capital allowances restriction does not affect the notional no gain/no loss consideration at which the asset is deemed to have been transferred between group members.
• For the purpose of calculating the gain or loss on disposal outside the group, all group members are treated as the same person, so the disposing member is deemed to have acquired the asset when it was first acquired by the group.
• Where development land was transferred within the group before 24 April 1992 in a transaction that gave rise to a CGT liability, the gain on a subsequent disposal outside the group is calculated by reference to the transfer price in the last taxable transfer within the group, rather than the original cost to the group.