Taxes Consolidation Act 1997 section 842

Replacement of harbour authorities by port companies

Section 842 ensures that the transfer of assets from harbour authorities to port companies under the Harbours Act 1996 is tax neutral, so that no capital gains tax or capital allowances balancing charges arise on the transfer.

• A "relevant port company" is a harbour company formed under section 7 or section 87 of the Harbours Act 1996, as defined in paragraph 1 of Schedule 26.
• Where assets are vested in or transferred to a relevant port company under the Harbours Act 1996, the detailed rules in Schedule 26 apply to ensure no tax charge arises.
• The transferred assets are treated for capital gains tax and capital allowances purposes as having been acquired by the port company at the same time and cost as the harbour authority originally acquired them.
• Section 842 and Schedule 26 apply from 1 March 1997, the date immediately before the first new port company was established.