Legalize / United Kingdom / Public General Act

Crossrail Act 2008

Type Public General Act

Publication 2008-07-22

Last updated 2024-10-30

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

(11) Section 39(1) (power to investigate in advance of operations notice any site which may be acquired compulsorily) shall have effect as if operations carried out in exercise of the powers conferred by this Act with respect to works were exempt works for the purposes of that provision.

(12) Section 42(1) (prohibition on use of metal detectors in protected places without consent) shall not apply to the use of a metal detector for the purposes of or in connection with the exercise of the powers conferred by this Act with respect to works.

(13) Section 42(3) (prohibition on removal without consent of object discovered by use of a metal detector in a protected place) shall not apply to the removal of objects discovered by the use of a metal detector for the purposes of or in connection with the exercise of the powers conferred by this Act with respect to works.

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(1) The power of entry conferred by section 36(1) of the National Heritage Act 1983 (c. 47) (entry to obtain information about ancient monuments and historic buildings for the purposes of the records kept by the Historic Buildings and Monuments Commission for England) shall only be exercisable in relation to land used, or intended for use, for or in connection with the carrying out of any of the works authorised by this Act with the consent of the nominated undertaker, such consent not to be unreasonably withheld.

(2) Consent for the purposes of sub-paragraph (1) may be granted subject to compliance with any reasonable requirements or conditions imposed for reasons of safety or for the purpose of preventing interference with or delay to the works.

(3) Section 36(6) of the National Heritage Act 1983 (which, in relation to land on which works are being carried out, regulates the exercise of the right to enter land to obtain information about ancient monuments and historic buildings for the purposes of the records kept by the Historic Buildings and Monuments Commission for England) shall not apply in relation to land on which works authorised by this Act are being carried out.

(4) Any dispute under this paragraph shall, if the parties agree, be referred to arbitration, but shall otherwise be determined by the appropriate Ministers acting jointly.

(5) In sub-paragraph (4), “appropriate Ministers” means the Secretary of State for Transport and the Secretary of State for Culture, Media and Sport.

SCHEDULE 10

1

(1) Any person duly authorised in writing by the Historic Buildings and Monuments Commission for England (“the Commission”) may at any reasonable time enter any land on which (or in or under which) a scheduled monument (within the meaning of the Ancient Monuments and Archaeological Areas Act 1979 (c. 46)) is situated—

(a) for the purpose of observing or advising upon the exercise in relation to the land of any of the powers conferred by paragraph 9 of Schedule 2 above, or

(b) for the purpose of inspecting, observing or advising upon the carrying out of any works on the land in exercise of any of the other powers conferred by this Act.

(2) Any person duly authorised in writing by the Commission may at any reasonable time enter any land in Greater London for the purpose of inspecting or observing the carrying out in relation to any building on the land of any decontrolled works.

(3) The right conferred by sub-paragraph (1) or (2) shall not be exercisable at a time when the nominated undertaker reasonably considers that it is not safe to exercise it.

(4) A person exercising the right conferred by sub-paragraph (1) or (2) shall comply with any directions given by the nominated undertaker for the purpose of securing compliance with relevant health and safety provisions.

(5) In this paragraph, “decontrolled works” means works to which section 7 or 74 of the Planning (Listed Buildings and Conservation Areas) Act 1990 (c. 9) would apply, but for paragraph 1(1)(a), (3) or (4) or 2(1)(a) of Schedule 9 to this Act.

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(1) The nominated undertaker shall not carry out any decontrolled works consisting of the demolition of a building unless—

(a) notice of the proposal to carry out the works has been given to the Commission, and

(b) the appropriate period since the giving of the notice has elapsed.

(2) Subject to sub-paragraph (3), the appropriate period for the purposes of sub-paragraph (1)(b) is 8 weeks or such longer period as may have been agreed between the nominated undertaker and the Commission.

(3) In case of emergency, the appropriate period for the purposes of sub-paragraph (1)(b) is such period as is reasonable in the circumstances.

(4) In determining whether the appropriate period for the purposes of sub-paragraph (1)(b) has elapsed, there shall be disregarded any day on which entry to the building is refused under paragraph 3(2).

(5) In this paragraph, “decontrolled works” means works to which section 7 of the Planning (Listed Buildings and Conservation Areas) Act 1990 would apply, but for paragraph 1(1)(a) or (3) of Schedule 9 to this Act.

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(1) Following the giving of a notice under paragraph 2(1) in relation to any building, any person duly authorised in writing by the Commission may, at any reasonable time during the inspection period, enter the building for the purpose of recording it.

(2) The right conferred by sub-paragraph (1) shall not be exercisable at a time when the nominated undertaker reasonably considers that it is not safe to exercise it.

(3) A person exercising the right conferred by sub-paragraph (1) shall comply with any directions given by the nominated undertaker for the purpose of securing compliance with relevant health and safety provisions.

(4) For the purposes of sub-paragraph (1), the inspection period, in relation to a building which is the subject of a notice under paragraph 2(1), is the period beginning when the notice under that provision is given and ending when the prohibition under that provision ceases to apply to the building.

SCHEDULE 11

Highway (Railway Crossings) Act 1839 (c. 45)

1

The Highway (Railway Crossings) Act 1839 shall not apply to a railway authorised by this Act.

Railway Regulation Act 1842 (c. 55)

2

Section 9 of the Railway Regulation Act 1842 shall not apply to a railway authorised by this Act.

Railways Clauses Consolidation Act 1845 (c. 20)

3

(1) The Railways Clauses Consolidation Act 1845, insofar as applicable for the purposes of this Act and not inconsistent with its provisions, is hereby incorporated with this Act.

(2) The following provisions are excepted from incorporation by virtue of sub-paragraph (1)—

(3) In their application by virtue of sub-paragraph (1)—

(a) section 2 shall have effect with the substitution for “so incorporated as aforesaid” of “ incorporated ”;

(b) section 6 shall have effect with the omission of the words “and to take lands for that purpose”, “taken or” and “for the value of the lands so taken or used, and”;

(c) sections 18 and 21 shall not apply in any case where the relations between the nominated undertaker and any other person are regulated by sections 84 and 85 of the New Roads and Street Works Act 1991 (c. 22) or Part 2 of Schedule 17 to this Act;

(d) section 68 shall have effect with the omission of the words from “Such and” to “formation thereof” and from “together with all necessary gates” to “all necessary stiles”.

Railways Clauses Act 1863 (c. 92)

4

(1) Part 1 of the Railways Clauses Act 1863, insofar as applicable for the purposes of this Act and not inconsistent with its provisions, is hereby incorporated with this Act.

(2) The following provisions are excepted from incorporation by virtue of sub-paragraph (1)—

Railway Companies (Accounts and Returns) Act 1911 (c. 34)

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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

British Transport Commission Act 1949 (c. xxix)

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(1) Section 55 the British Transport Commission Act 1949 (penalty for trespass on railways etc.) shall also apply in relation to any railway, siding, tunnel, railway embankment, cutting or similar work constructed in exercise of the powers conferred by this Act.

(2) Section 56 of that Act (penalty for stone throwing etc. on railways) shall also apply in relation to any railway or siding constructed in exercise of the powers conferred by this Act.

Miscellaneous

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(1) In their application to—

(a) a Crossrail undertaker,

(b) Crossrail, or

the enactments specified in column (1) of the following table (which create the offences broadly described in column (2) of the table) shall each have effect as if the maximum fine which may be imposed on summary conviction of any offence specified in the enactment were, instead of that specified in column (3) of the table, a fine not exceeding the level specified in column (4) of the table.

(1)	(2)	(3)	(4)
Enactment	Description of offence	Maximum fine otherwise applicable (level on standard scale)	Maximum fine (level on standard scale)
Section 16 of the Railway Regulation Act 1840 (c. 97).	Obstruction of officers of railway company or trespass upon railway.	Level 1	Level 3
Section 17 of the Railway Regulation Act 1842 (c. 55).	Misconduct of persons employed on railways.	Level 1	Level 3
The Regulation of Railways Act 1889 (c. 57)—
section 5(1)	Failure to produce ticket, to pay fare or to give name and address.	Level 1	Level 2
section 5(3).	Travel with intent to avoid payment of fare.	Level 2	Level 3

(2) In such application—

(a) section 16 of the Railway Regulation Act 1840 (c. 97) shall have effect as if the court had, as an alternative to imposing a fine, the power to award imprisonment for a period not exceeding 51 weeks;

(b) section 5(2) of the Regulation of Railways Act 1889 (power to arrest passenger who fails to produce ticket and refuses to give his name and address) shall have effect as if after the word “refuses” there were inserted the words “ or fails ”.

(3) In relation to an offence committed before the commencement of section 281(5) of the Criminal Justice Act 2003 (c. 44), the reference in subsection (2)(a) to 51 weeks shall be read as a reference to one month.

(4) In this paragraph, “Crossrail undertaker” means a person who, under section 39, is the nominated undertaker for any purpose of section 1(1), so far as relating to Crossrail.

SCHEDULE 12

Part 1 — Transfers from Cross London Rail Links Limited and its subsidiaries

1

(1) The Secretary of State may make schemes for the transfer of property, rights and liabilities—

(a) from Cross London Rail Links Limited (“CLRL”), or

(b) from a body corporate which is a wholly-owned subsidiary of CLRL,

to any person, including the Secretary of State.

(2) The Secretary of State shall consult CLRL before making a scheme under sub-paragraph (1).

Part 2 — Transfers from the Greater London Authority, Transport for London ... and their subsidiaries

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(1) The Secretary of State may, for purposes connected with Crossrail, make schemes for the transfer of property, rights and liabilities—

(a) from the Greater London Authority ... or Transport for London, or

(b) from a body corporate which is a wholly owned subsidiary of the Greater London Authority ... or Transport for London,

to any person, including the Secretary of State.

(2) The power conferred by sub-paragraph (1) shall be exercisable only with the consent of the transferor.

Part 3 — Transfers from Secretary of State and companies owned by Secretary of State

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(1) The Secretary of State may, for purposes connected with Crossrail, make schemes for the transfer of property, rights and liabilities—

(a) from the Secretary of State, or

(b) from a company which is wholly owned by the Secretary of State,

to any person.

(2) For the purposes of this paragraph, a company is wholly owned by the Secretary of State at any time when it has no members other than one or more persons falling within the following paragraphs—

(a) the Secretary of State;

(b) a company which is wholly owned by the Secretary of State;

Part 4 — General provisions about transfer schemes

Scheme for grant of lease

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Any power under paragraph 1, 2 or 3 to make a scheme for the transfer of any property from one person (A) to another person (B) may be exercised instead so as to make a scheme under that paragraph for the creation by A in favour of B of an interest in, or right in relation to, the property.

Property, rights and liabilities that may be transferred

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The property, rights and liabilities for whose transfer a scheme may provide include (in particular)—

(a) rights and liabilities relating to contracts of employment;

(b) property, rights and liabilities that would not otherwise be capable of being transferred or assigned by the transferor;

(d) rights and liabilities under an enactment.

Creation by a scheme of interests, rights and liabilities

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(1) A scheme may contain—

(a) provision for the creation, in favour of the transferor, of—

(i) an interest in, or

(ii) a right in relation to,

property whose transfer is provided for by the scheme,

(b) provision for the creation, in favour of a transferee, of—

(i) an interest in, or

(ii) a right in relation to,

property retained by the transferor,

(i) an interest in, or

(ii) a right in relation to,

property whose transfer to another person is provided for by the scheme,

(d) provision for the creation of rights and liabilities as between the transferor and a transferee, and

(e) provision for the creation of rights and liabilities as between different transferees.

(2) A scheme may contain provision about enforcement, by or against any one or more of the transferor and the transferee or transferees, of a right or liability whose transfer or creation is provided for by the scheme.

Identifying what is transferred or created by a scheme

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(1) A scheme may define property, rights or liabilities for whose transfer it provides—

(a) by specifying it or them;

(b) by describing it or them.

(2) A scheme may define retained property for the purposes of provision made under paragraph 6(1)(b)—

(a) by specifying it;

(b) by describing it.

(3) A description of property, rights or liabilities may be framed (in particular)—

(a) by reference to the transferor's undertaking;

(b) by reference to a specified part of that undertaking.

Scheme may provide for contraventions etc. to be treated as not occurring

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(1) A scheme may contain provision for a transfer to take effect as if there were no contravention or liability, or interference with any interest or right, that there would otherwise be by reason of a provision falling within sub-paragraph (2).

(2) A provision falls within this sub-paragraph if it has effect (whether under an enactment or agreement or otherwise) in relation to the terms on which the transferor is entitled to the property or right, or subject to the liability, for whose transfer the scheme provides.

(3) A scheme may contain provision for—

(a) the creation of an interest in property, or

(b) the creation of a right in relation to property,

to take effect as if there were no contravention or liability, or interference with any interest or right, that there would otherwise be by reason of a provision falling within sub-paragraph (4) or (5).

(4) A provision falls within this sub-paragraph if it has effect (whether under an enactment or agreement or otherwise) in relation to the terms on which the transferor is entitled to the property.

(5) A provision falls within this sub-paragraph if it has effect (whether under an enactment or agreement or otherwise) in relation to the terms on which a subsidiary of the transferor is entitled or subject to anything immediately before the creation of the interest or right takes effect.

Transfer of shares in subsidiary of transferor

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(1) This paragraph applies where a scheme provides for the transfer of shares in a subsidiary of the transferor.

(2) The scheme may contain provision for the transfer to take effect as if there were no contravention or liability, or interference with any interest or right, that there would otherwise be by reason of a provision falling within sub-paragraph (3), but this is without prejudice to paragraph 8(1).

(3) A provision falls within this sub-paragraph if it has effect (whether under an enactment or agreement or otherwise) in relation to the terms on which the subsidiary is entitled or subject to anything immediately before the transfer takes effect.

Scheme may modify interests, rights and liabilities of third parties

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(1) A scheme may contain provision for interests, rights or liabilities of third parties in relation to anything to which the scheme relates to be modified in the manner set out in the scheme.

(2) In sub-paragraph (1) “third party”, in relation to a scheme, means a person who is neither the transferor nor a transferee.

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(1) Sub-paragraph (2) applies where (apart from that sub-paragraph) a person would have a triggered entitlement in consequence of—

(a) property, rights or liabilities having been, or being likely to be, transferred by the operation of paragraph 14(1) in relation to a scheme,

(b) interests, rights or liabilities having been, or being likely to be, created by the operation of paragraph 14(1) in relation to a scheme, or

(2) That triggered entitlement shall, as respects the interest or right to which it relates, be enforceable in consequence of the circumstances mentioned in sub-paragraph (1)(a), (b) or (c) to the extent only that the scheme provides for it to be so enforceable.

(3) In this paragraph “triggered entitlement”, in relation to a scheme, means an entitlement—

(a) to terminate, modify, acquire or claim an interest or right to which the transferor, or a subsidiary of the transferor, is entitled or subject, or

(b) to treat an interest or right to which the transferor, or a subsidiary of the transferor, is entitled or subject as modified or terminated.

Scheme may impose obligations to enter into agreements or execute instruments

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(1) A scheme may contain provision for imposing, on the transferor or a transferee, obligations—

(a) to enter into agreements with, or

(b) to execute instruments in favour of,

persons specified in the scheme.

(2) The persons who may be so specified are—

(a) a transferee;

(b) the transferor;

(3) Sub-paragraphs (4) to (7) apply where a scheme contains provision for imposing an obligation of the kind mentioned in sub-paragraph (1).

(4) The scheme must specify or describe the agreement or instrument to which the obligation relates.

(5) The obligation may be enforced in any authorised way by the person—

(a) with whom the agreement is to be entered into, or

(b) in favour of whom the instrument is to be executed.

(6) In sub-paragraph (5) “enforced in any authorised way” means—

(a) enforced in civil proceedings for an injunction,

(b) enforced in civil proceedings for any other appropriate remedy or relief, or

(7) The scheme may provide for sub-paragraph (6)(a) or (b)—

(a) not to apply in relation to the obligation, or

(b) to apply in relation to the obligation subject to restrictions imposed by the scheme.

Supplementary provisions of schemes

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(1) A scheme may make such incidental, supplementary, consequential and transitional provision as the Secretary of State considers appropriate.

(2) The provision under sub-paragraph (1) that may be made by a scheme includes (in particular)—

(a) provision saving the effect of things done by or in relation to the transferor,

(b) provision for a transferee to be treated as the same person in law as the transferor,

(c) provision for things done by or in relation to the transferor to be treated as done by or in relation to a transferee,

(d) provision for things (including legal proceedings) being done by or in relation to the transferor to be continued by or in relation to a transferee, and

(e) provision for references in a document to the transferor, or to an employee or office-holder of the transferor, to have effect with modifications specified in the scheme.

(3) In sub-paragraph (2)(e), the reference to an employee or office-holder of the transferor includes a reference to a person employed in any part of the statutory home civil service.

(4) Sub-paragraph (2)(e) does not apply to references in an enactment.

Effect of scheme

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(1) At the time appointed for the purpose by a scheme—

(a) property, rights and liabilities for whose transfer the scheme provides, and

(b) interests, rights and liabilities for whose creation the scheme provides,

shall, by virtue of this sub-paragraph, be transferred or (as the case may be) created in accordance with the scheme.

(2) A scheme may appoint different times for the transfer or creation of different things.

Modification of scheme by agreement

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(1) Where the transferor, and the transferee or transferees, under a scheme so agree, the scheme shall be treated for all purposes as having been made with such modifications as may be agreed.

(2) Sub-paragraph (1) does not apply in the case of an agreement relating to rights and liabilities under a contract of employment unless the employee is a party to the agreement.

(3) Sub-paragraph (1) does not apply in the case of an agreement that adversely affects the property or rights of a person other than the transferor or a transferee unless that person is a party to the agreement.

(4) An agreement under sub-paragraph (1) may make—

(a) any provision that could have been contained in the scheme, and

(b) incidental, supplementary, consequential and transitional provision in connection with giving effect to any such provision.

(5) Provision under sub-paragraph (4) may be made so as to have effect from when the scheme was made (or any later time).

Transfer of employees and continuity of employment

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(1) Where, by virtue of a scheme, a person employed by the transferor becomes an employee of a transferee—

(a) the person is not to be regarded for the purposes of Part 11 of the Employment Rights Act 1996 (c. 18) as having been dismissed by virtue of the transfer,

(b) the person's period of employment with the transferor counts, for the purposes of that Act, as a period of employment with the transferee, and

(2) In sub-paragraph (1)—

(a) a reference to becoming an employee of a person includes a reference to becoming employed in any part of the statutory home civil service, and

(b) a reference to being employed by a person, or to employment with a person, includes a reference to being employed in any part of the statutory home civil service.

Provision of information to person making scheme

17

Where the Secretary of State proposes to make a scheme under paragraph 1(1), 2(1) or 3(1) he may direct—

(a) a proposed transferor,

(b) a proposed transferee, or

to provide him with such information as he considers necessary to enable him to make the scheme.

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(1) This paragraph applies to a direction under paragraph 17.

(2) The direction must specify the period within which the information is to be provided.

(3) The period specified must be not less than 28 days beginning with the day when the direction is given.

(4) If a person fails to comply with the direction, the Secretary of State may serve a notice on the person—

(a) requiring the person to produce to the Secretary of State, at a time and place specified in the notice, any documents which are specified or described in the notice and are in the person's custody or control, or

(b) requiring the person to provide to the Secretary of State, at a time and place and in the form and manner specified in the notice, such information as may be specified or described in the notice.

(5) No person may be required under this paragraph—

(a) to produce a document which he could not be compelled to produce in civil proceedings in the High Court, or

(b) to provide information which he could not be compelled to give in evidence in such proceedings.

(6) A person who intentionally alters, suppresses or destroys a document which he has been required to produce by a notice under sub-paragraph (4) is guilty of an offence and liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum, and

(b) on conviction on indictment, to a fine.

(7) If a person fails to comply with a notice under sub-paragraph (4), the High Court may, on the application of the Secretary of State, make such order as the court thinks fit for requiring the failure to be made good.

(8) Any order under sub-paragraph (7) may include provision requiring all the costs or expenses of and incidental to the application to be borne by one or more of—

(a) the person in default, and

(b) any officers of a body corporate or other association who are responsible for its default.

(9) In this paragraph—

(a) a reference to the production of a document includes a reference to the production of a legible and intelligible copy of information recorded otherwise than in legible form, and

(b) the reference to suppressing a document includes a reference to destroying the means of reproducing information recorded otherwise than in legible form.

Agreements relating to schemes

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The Secretary of State may by agreement fetter the exercise of his discretion relating to his powers under this Schedule.

Part 5 — Interpretation

Interpretation

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(1) In sub-paragraph (2), and in Part 4 of this Schedule except where the context otherwise requires, “scheme” means a scheme under paragraph 1(1), 2(1) or 3(1).

(2) In this Schedule—

“enactment” includes an enactment—contained in an instrument made under an Act, orcontained in, or in an instrument made under, an Act of the Scottish Parliament;

“the statutory home civil service” means the civil service (excluding Her Majesty's diplomatic service) within the meaning of Chapter 1 of Part 1 of the Constitutional Reform and Governance Act 2010 (see section 1(4) of that Act);

“subsidiary” and “wholly-owned subsidiary” have the meaning given by section 736 of the Companies Act 1985 (c. 6);

“transferee”, in relation to a scheme, means a person who is a transferee in respect of property, rights or liabilities for whose transfer the scheme provides (or the person in whose favour any interest or right is created pursuant to paragraph 4);

“transferor”, in relation to a scheme, means the person for the transfer of whose property, rights or liabilities the scheme provides (or the person by whom any interest or right is created pursuant to paragraph 4).

(3) References in this Schedule to a right or to an entitlement to a right include references to an entitlement to exercise a right; and, accordingly, references to a right's arising include references to its becoming exercisable.

SCHEDULE 13

Part 1 — Introduction

Meaning of “public body”

1

In this Schedule “public body” means a person which is a public body for the purposes of section 66 of FA 2003 (SDLT: transfers involving public bodies).

Meaning of “taxable public body” and “exempt public body”

2

(1) In this Schedule “taxable public body” means a public body which is within the charge to corporation tax.

(2) In this Schedule “exempt public body” means a public body which is exempt from corporation tax.

Interpretation: supplementary

3

(1) In this Schedule—

“CAA 2001” means the Capital Allowances Act 2001 (c. 2);

“ CTA 2009 ” means the Corporation Tax Act 2009;

“ CTA 2010 ” means the Corporation Tax Act 2010;

“FA”, followed by a year, means the Finance Act of that year;

“ICTA” means the Income and Corporation Taxes Act 1988 (c. 1);

“ITA 2007” means the Income Tax Act 2007 (c. 3);

“ITTOIA 2005” means the Income Tax (Trading and Other Income) Act 2005 (c. 5);

“TCGA 1992” means the Taxation of Chargeable Gains Act 1992 (c. 12);

“TMA 1970” means the Taxes Management Act 1970 (c. 9);

“transfer scheme” means a scheme made under Schedule 12 to this Act;

“transferee”, in relation to a transfer in accordance with a transfer scheme, means the person to whom the transfer is made;

“transferor”, in relation to a transfer in accordance with a transfer scheme, means the person from whom the transfer is made.

(2) So far as it relates to income tax this Schedule is to be construed as one with the Income Tax Acts.

(3) So far as it relates to capital gains tax this Schedule is to be construed as one with TCGA 1992.

(4) So far as it relates to corporation tax this Schedule is to be construed as one with the Corporation Tax Acts.

(5) So far as it relates to capital allowances this Schedule is to be construed as one with CAA 2001.

Part 2 — Transfers etc between taxable public bodies

Meaning of “relevant transfer” in Part 2 of Schedule

4

In this Part of this Schedule “relevant transfer” means a transfer, in accordance with a transfer scheme, from a taxable public body to another taxable public body.

Computation of profits and losses in respect of transfer of trade

5

(1) This paragraph applies where a taxable public body (“the predecessor”) is carrying on a trade or a part of a trade and, as a result of a transfer scheme—

(a) the predecessor ceases to carry on that trade or that part of that trade, and

(b) another taxable public body (“the successor”) begins to carry on that trade or that part of it.

(2) For the purpose of computing, in relation to the time when the scheme comes into force and subsequent times, the relevant trading profits or losses of the predecessor and the successor—

(a) the trade or part is to be treated as having been a separate trade at the time of its commencement and as having been carried on by the successor at all times since its commencement as a separate trade, and

(b) the trade carried on by the successor after the time when the scheme comes into force is to be treated as the same trade as that which it is treated, by virtue of paragraph (a), as having carried on as a separate trade before that time.

(3) Where a trade or a part of a trade falls to be treated under this paragraph as a separate trade, such apportionments of receipts, expenses, assets and liabilities shall be made for the purpose of computing relevant trading profits or losses as may be just and reasonable.

(4) This paragraph is subject to the other provisions of this Part of this Schedule.

(5) In this paragraph “relevant trading profits or losses” means profits or losses under Part 3 of CTA 2009 in respect of the trade or part of a trade in question for periods in which the trade was carried on wholly or partly in the United Kingdom.

Transfers of trading stock

6

(1) This paragraph applies if—

(a) under a relevant transfer trading stock of the transferor is transferred to the transferee, and

(b) paragraph 5 does not apply in relation to that transfer.

(2) Sub-paragraphs (3) and (4) have effect in computing for any corporation tax purpose both the profits of the trade in relation to which the stock is trading stock immediately before the transfer takes effect (“the transferor's trade”) and—

(a) if the stock falls immediately after the transfer takes effect to be treated as trading stock of the transferee, the profits of the trade in relation to which it falls to be treated as trading stock (“the transferee's trade”);

(b) otherwise, the consideration given by the transferee, or the expenditure incurred by the transferee, for the acquisition of the stock.

(3) The stock must be taken to have been—

(a) disposed of by the transferor in the course of the transferor's trade,

(b) if sub-paragraph (2)(a) applies, acquired by the transferee in the course of the transferee's trade, and

(4) The stock must be valued as if the disposal and acquisition had been for a consideration which in relation to the transferor would have resulted in neither a profit nor a loss being brought into account in respect of the disposal in the accounting period of the transferor which ends with, or is current at, the time when the transfer takes effect.

(5) In this paragraph “trading stock” has the meaning given by section 163 of CTA 2009.

Capital allowances: transfer of whole trade

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(1) This paragraph applies where a taxable public body (“the predecessor”) is carrying on a trade and, as a result of a transfer scheme—

(a) the predecessor ceases to carry on that trade, and

(b) another taxable public body (“the successor”) begins to carry on that trade.

(2) For the purposes of the allowances and charges provided for by CAA 2001, the trade is not to be treated as permanently discontinued, nor a new trade as set up; but sub-paragraphs (3) and (4) are to apply.

(3) There are to be made to or on the successor, in accordance with CAA 2001, all such allowances and charges as would, if the predecessor had continued to carry on the trade, have fallen to be made to or on the predecessor.

(4) The amounts of those allowances and charges are to be computed as if—

(a) the successor had been carrying on the trade since the predecessor began to do so, and

(b) everything done to or by the predecessor had been done to or by the successor,

but so that transfers in accordance with the scheme, so far as they relate to assets in use for the purposes of the trade, shall not be treated as giving rise to an allowance or charge.

Capital allowances: transfer of part of a trade

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(1) Where a taxable public body (“the predecessor”) is carrying on a trade and, as a result of a transfer scheme—

(a) the predecessor ceases to carry on a trade, and

(b) another taxable public body (“the successor”) begins to carry on activities of that trade as part of a trade carried on by the successor,

then that part of the trade carried on by the successor shall be treated for the purposes of paragraph 7 as a separate trade.

(2) Where a taxable public body (“the predecessor”) is carrying on a trade and, as a result of a transfer scheme—

(a) the predecessor ceases to carry on a part of a trade, and

(b) another taxable public body begins to carry on activities of that part of that trade,

then the predecessor shall be treated for the purposes of paragraph 7 and sub-paragraph (1) as having carried on that part of its trade as a separate trade.

(3) Where activities fall to be treated for the purposes of this paragraph as a separate trade, such apportionments of receipts, expenses, assets and liabilities shall be made for the purposes of CAA 2001 as may be just and reasonable.

Capital allowances: transfer of plant or machinery

9

(1) This paragraph applies where—

(a) there is a relevant transfer of plant or machinery,

(b) paragraph 7 does not apply in relation to that transfer,

(c) the plant or machinery would be treated for the purposes of CAA 2001 as disposed of by the transferor to the transferee on the transfer taking effect, and

(d) the transfer scheme in accordance with which the transfer is made contains provision for the disposal value of the plant or machinery to be treated for the purposes of that Act as an amount specified in or determined in accordance with the scheme.

(2) For the purposes of CAA 2001—

(a) the provision mentioned in sub-paragraph (1)(d) is to have effect for determining an amount as the disposal value of the plant or machinery or the price at which a fixture is to be treated as sold,

(b) the transferee is to be treated as having incurred capital expenditure of that amount on the provision of the plant or machinery for the purposes for which it is used by the transferee on and after the taking effect of the transfer,

(c) the property is to be treated as belonging to the transferee as a result of the transferee having incurred that expenditure, and

(d) in the case of a fixture, the expenditure which falls to be treated as incurred by the transferee is to be treated for the purposes of sections 181(1) and 182(1) of that Act as being incurred by the giving of a consideration consisting in a capital sum of that amount.

(3) The provision mentioned in sub-paragraph (1)(d) for the determination of an amount may include provision for a determination—

(a) to be made by the Secretary of State in a manner described in the scheme,

(b) to be made by reference to factors so described or to the opinion of a person so described, and

(4) The consent of the Treasury is required for the making or modification of a determination under the provision mentioned in sub-paragraph (1)(d).

(5) The consent of the transferee is required for the modification of a determination under the provision mentioned in sub-paragraph (1)(d).

(6) As to the making of a determination or a modification of a determination under the provision mentioned in sub-paragraph (1)(d), see further paragraph 43.

(7) Expressions used in this paragraph and in Part 2 of CAA 2001 have the same meanings in this paragraph as in that Part.

Capital allowances: transfers not to be sales

10

(1) This paragraph applies for the purposes of Part 3 of CAA 2001, and the other provisions of that Act which are relevant to that Part, to a relevant transfer of the relevant interest in an industrial building or structure.

(2) Neither section 559 nor section 573 of that Act is to have effect in relation to that transfer.

Chargeable gains: assets to be treated as disposed of without a gain or a loss

11

(1) For the purposes of TCGA 1992 a disposal—

(a) constituted by a relevant transfer, or

(b) to which sub-paragraph (2) applies,

is to be taken (in relation to the person to whom the disposal is made as well as the person making the disposal) to be for a consideration such that no gain or loss accrues to the person making the disposal.

(2) This sub-paragraph applies to a disposal if—

(a) it is made in accordance with provision contained in a transfer scheme by virtue of paragraph 4, 6 or 12 of Schedule 12 to this Act,

(b) the person making the disposal and the person to whom the disposal is made are taxable public bodies, and

(3) Sub-paragraph (1) is subject to paragraph 12.

Chargeable gains: roll-over relief

12

(1) This paragraph applies if—

(a) but for section 154 of TCGA 1992 (depreciating assets) a held-over gain would have been carried forward to a depreciating asset, and

(b) the asset is the subject of a relevant transfer.

(2) Section 154 is to have effect as if the gain had accrued to, and the claim for it to be held over had been made by, the transferee and as if the transferor's acquisition of the depreciating asset had been the transferee's acquisition of it.

(3) Expressions used in this paragraph and in section 154 have the same meanings in this paragraph as in that section.

Continuity in relation to transfer of intangible assets

13

(1) For the purposes of Part 8 of CTA 2009—

(a) a relevant transfer of a chargeable intangible asset of the transferor is to be treated as a tax-neutral transfer, and

(b) an intangible fixed asset which is an existing asset of the transferor at the time of a relevant transfer is to be treated, on and after the transfer, as an existing asset in the hands of the transferee.

(2) Expressions used in this paragraph and in that Part have the same meanings in this paragraph as in that Part.

Continuity in relation to loan relationships

14

(1) For the purposes of the application of Part 5 of CTA 2009 (loan relationships) in relation to a relevant transfer, the transferee and the transferor are to be treated as if, at the time of the transfer, they were members of the same group.

(2) In sub-paragraph (1) the reference to being members of the same group must be construed in accordance with section 335(6) of that Act.

Continuity in relation to derivative contracts

15

(1) For the purposes of the application of Part 7 of CTA 2009 (derivative contracts) in relation to a relevant transfer, the transferee and the transferor are to be treated as if, at the time of the transfer, they were members of the same group.

(2) In sub-paragraph (1) the reference to being members of the same group must be construed in accordance with section 624(3) of that Act.

Leased assets

16

(1) This paragraph applies for the purposes of section 781 of ICTA (assets leased to traders and others) where—

(a) the interest of the lessor or the lessee under a lease, or any other interest in an asset, is transferred under a relevant transfer, or

(b) a lease, or any other interest in a lease, is granted by a taxable public body to another taxable public body in accordance with provision contained by virtue of paragraph 4, 6 or 12 of Schedule 12 to this Act in a transfer scheme.

(2) Section 783(4) of ICTA is to be disregarded and the transfer or grant is to be treated as made without any capital sum having been obtained in respect of the interest or lease by the transferor or grantor.

(3) In the case of the transfer of an interest under a lease, payments made by the transferor under the lease before the transfer takes effect are to be treated as if they had been made under that lease by the transferee.

(4) Expressions used in this paragraph and in sections 781 to 785 of ICTA have the same meanings in this paragraph as in those sections.

Part 3 — Transfers etc from taxable public bodies to exempt public bodies

Meaning of “relevant transfer” in Part 3 of Schedule

17

In this Part of this Schedule “relevant transfer” means a transfer, in accordance with a transfer scheme, from a taxable public body to an exempt public body.

Transfers of trading stock

18

(1) This paragraph applies if under a relevant transfer trading stock of the transferor is transferred to the transferee.

(2) Sub-paragraphs (3) and (4) have effect in computing for any corporation tax purpose the profits of the trade in relation to which the stock is trading stock immediately before the transfer takes effect (“the transferor's trade”).

(3) The stock must be taken to have been—

(a) disposed of by the transferor in the course of the transferor's trade, and

(b) subject to that, disposed of when the transfer takes effect.

(4) The value of the stock is to be taken to be—

(a) if consideration is given to the transferor in respect of the transfer, an amount equal to the value of the consideration, or

(b) if no such consideration is given, nil.

(5) For the purposes of this paragraph consideration given to a person connected with the transferor is to be treated as given to the transferor.

(6) In this paragraph “trading stock” has the meaning given by section 163 of CTA 2009.

(7) For the purposes of this paragraph whether a person is connected with another person is determined in accordance with section 1122 of CTA 2010 (connected persons).

Capital allowances: determination of disposal value of plant or machinery

19

(1) This paragraph applies to a relevant transfer of plant or machinery which is a disposal event for the purposes of Part 2 of CAA 2001 (capital allowances for plant and machinery).

(2) For the purposes of the application of section 61 of that Act in relation to the transferor, the disposal value of the plant or machinery is to be treated—

(a) if a capital sum is received by the transferor by way of consideration or compensation in respect of the transfer, as an amount equal to that sum, or

(b) if no such sum is received, as nil.

(3) For the purposes of this paragraph a sum received by a person connected with the transferor is to be treated as received by the transferor.

(4) Section 88 of CAA 2001 (sales at an undervalue) is to be disregarded.

(5) This paragraph is subject to sections 63(5) and 68 of CAA 2001.

Capital allowances: determination of disposal value of fixtures

20

(1) This paragraph applies to a relevant transfer if—

(a) it is a disposal event for the purposes of Part 2 of CAA 2001, and

(b) by virtue of the transfer a person is treated by section 188 of that Act as ceasing to own a fixture.

(2) For the purposes of the application of section 196 of that Act in relation to the transferor, the disposal value of the fixture is to be treated—

(a) if a capital sum is received by the transferor by way of consideration or compensation in respect of the transfer, as an amount equal to that portion of that sum which, if the person to whom the disposal is made were entitled to an allowance, would fall to be treated for the purposes of Part 2 of that Act as expenditure incurred by that person on the provision of the fixture, or

(b) if no such sum is received, as nil.

(3) For the purposes of this paragraph a sum received by a person connected with the transferor is to be treated as received by the transferor.

(4) This paragraph is subject to section 63(5) of CAA 2001.

Capital allowances: determination of capital value of industrial buildings etc.

21

(1) This paragraph applies for the purposes of Part 3 of CAA 2001, and the other provisions of that Act which are relevant to that Part, in relation to a relevant transfer of the relevant interest in an industrial building or structure.

(2) This paragraph is subject to section 36 of FA 2007 (which makes provision about balancing adjustments etc under Part 3 of CAA 2001).

(3) The transfer is to be treated as a sale of that relevant interest.

(4) The net proceeds of that sale are to be treated—

(a) if a capital sum is received by the transferor by way of consideration or compensation in respect of the transfer, as an amount equal to that sum, or

(b) if no such sum is received, as nil.

(5) For the purposes of this paragraph a sum received by a person connected with the transferor is to be treated as received by the transferor.

(6) Sections 567 to 570 of CAA 2001 (sales treated as being for alternative amount) are not to have effect in relation to that sale.

Chargeable gains: assets to be treated as disposed of without a gain or a loss

22

(1) For the purposes of TCGA 1992 a disposal—

(a) constituted by a relevant transfer, or

(b) to which sub-paragraph (2) applies,

is to be taken to be for a consideration such that no gain or loss accrues to the person making the disposal.

(2) This sub-paragraph applies to a disposal if—

(a) it is made in accordance with provision contained in a transfer scheme by virtue of paragraph 4, 6 or 12 of Schedule 12 to this Act,

(b) the person making the disposal is a taxable public body,

(d) each of those persons is either the transferor or a transferee under the scheme.

Neutral effect of transfer of intangible assets

23

(1) For the purposes of Part 8 of CTA 2009, a relevant transfer of a chargeable intangible asset of the transferor is to be treated as not involving any realisation of the asset by the transferor.

(2) Expressions used in this paragraph and in that Part have the same meanings in this paragraph as in that Part.

Neutral effect of transfer for loan relationships and derivative contracts

24

No credit or debit shall be required or allowed, in respect of a relevant transfer, to be brought into account in the transferor's case—

(a) for the purposes of Part 5 of CTA 2009 (loan relationships), or

(b) for the purposes of Part 7 of that Act (derivative contracts).

Leased assets

25

(1) This paragraph applies for the purposes of section 781 of ICTA (assets leased to traders and others) where—

(a) the interest of the lessor or the lessee under a lease, or any other interest in an asset, is transferred under a relevant transfer, or

(b) a lease, or any other interest in a lease, is granted by a taxable public body to an exempt public body in accordance with provision contained by virtue of paragraph 4, 6 or 12 of Schedule 12 to this Act in a transfer scheme.

(2) Section 783(4) of ICTA is to be disregarded and the transfer or grant is to be treated as made without any capital sum having been obtained in respect of the interest or lease by the transferor or grantor.

(3) Expressions used in this paragraph and in sections 781 to 785 of ICTA have the same meanings in this paragraph as in those sections.

Part 4 — Transfers from exempt public bodies to taxable public bodies

Meaning of “relevant transfer” in Part 4 of Schedule

26

In this Part of this Schedule “relevant transfer” means a transfer, in accordance with a transfer scheme, from an exempt public body to a taxable public body.

Capital allowances: transfer of plant or machinery

27

(1) This paragraph applies where—

(a) there is a relevant transfer of plant or machinery,

(b) the plant or machinery would have been treated for the purposes of CAA 2001 (had the transferor incurred expenditure qualifying for allowances under Part 2 of that Act on the provision of the plant or machinery) as disposed of by the transferor to the transferee on the transfer taking effect, and

(c) the transfer scheme in accordance with which the transfer is made contains provision for the transferee to be treated for the purposes of that Act as having incurred capital expenditure of an amount specified in or determined in accordance with the scheme on the provision of the plant or machinery.

(2) For the purposes of CAA 2001—

(a) the transferee is to be treated as having incurred capital expenditure of that amount on the provision of the plant or machinery for the purposes for which it is used by the transferee on and after the taking effect of the transfer,

(b) the property is to be treated as belonging to the transferee as a result of the transferee having incurred that expenditure, and

(c) in the case of a fixture, the expenditure which falls to be treated as incurred by the transferee is to be treated for the purposes of sections 181(1) and 182(1) of that Act as being incurred by the giving of a consideration consisting in a capital sum of that amount.

(3) The provision mentioned in sub-paragraph (1)(c) for the determination of an amount may include provision for a determination—

(a) to be made by the Secretary of State in a manner described in the scheme,

(b) to be made by reference to factors so described or to the opinion of a person so described, and

(4) The consent of the Treasury is required for the making or modification of a determination under the provision mentioned in sub-paragraph (1)(c).

(5) The consent of the transferee is required for the modification of a determination under the provision mentioned in sub-paragraph (1)(c).

(6) As to the making of a determination or a modification of a determination under the provision mentioned in sub-paragraph (1)(c), see further paragraph 43.

(7) Expressions used in this paragraph and in Part 2 of CAA 2001 have the same meanings in this paragraph as in that Part.

Capital allowances: determination of capital value of industrial buildings etc.

28

(1) This paragraph applies where there is a relevant transfer of the relevant interest in an industrial building or structure and the transfer scheme in accordance with which the transfer is made contains provision specifying for the purposes of section 311 of CAA 2001—

(a) the amount to be taken as the amount of the residue of qualifying expenditure immediately after the event, and

(b) the period to be taken as the period from the date of the event to the end of the period of 25 years beginning with the day on which the building or structure was first used.

(2) For the purposes of that section—

(a) the transfer is to be treated as the occurrence of a relevant event,

(b) the residue of qualifying expenditure immediately after the event is to be taken to be the amount specified by virtue of sub-paragraph (1)(a), and

(c) the period from the date of the event to the end of the period of 25 years beginning with the day on which the building or structure was first used is to be taken to be the period specified by virtue of sub-paragraph (1)(b).

(3) Expressions used in this paragraph and in Part 3 of CAA 2001 have the same meanings in this paragraph as in that Part.

Part 5 — Other provisions concerning transfers between public bodies

Meaning of “relevant transfer” in Part 5 of Schedule

29

In this Part of this Schedule “relevant transfer” means a transfer, in accordance with a transfer scheme, from a public body to another public body.

Trading losses: change in ownership

30

(1) This paragraph applies to a relevant transfer of all the issued share capital of a company (the “transferred company”).

(2) For the purposes of Chapters 2 to 5 of Part 14 of CTA 2010, the transfer is not to be taken to result in a change in the ownership of—

(a) the transferred company, or

(b) a company which is a wholly-owned subsidiary of the transferred company when the transfer takes effect.

Chargeable gains: degrouping charges

31

(1) This paragraph applies if a company (“the degrouped company”)—

(a) acquired an asset from another company at a time when both were members of the same group of companies (“the old group”),

(b) ceases by virtue of a relevant transfer to be a member of the old group, and

(2) Section 179 of TCGA 1992 (company ceasing to be member of group) is not to treat the degrouped company as having by virtue of the transfer sold and immediately reacquired the asset.

(3) Where sub-paragraph (2) has applied to an asset, section 179 of TCGA 1992 is to have effect on and after the first subsequent occasion on which the degrouped company ceases to be a member of the new group otherwise than by virtue of a relevant transfer as if—

(a) the degrouped company, and

(b) the company from which it acquired the asset,

had been members of the new group at the time of acquisition.

(4) If, disregarding any preparatory transactions, a company would be regarded by virtue of a relevant transfer—

(a) as ceasing to be a member of a group of companies for the purposes of section 179 of TCGA 1992 (and, accordingly, of this paragraph), or

(b) as becoming a member of a group of companies for the purposes of this paragraph,

it is to be regarded for those purposes as so doing by virtue of the relevant transfer and not by virtue of any preparatory transactions.

(5) In this paragraph “preparatory transactions” means anything done under or by virtue of this Act for the purpose of initiating, advancing or facilitating the relevant transfer in question.

(6) Expressions used in this paragraph and in section 179 of TCGA 1992 have the same meanings in this paragraph as in that section.

Stamp duty

32

(1) Stamp duty is not to be chargeable—

(a) on a transfer scheme in the case of which the transferor and each transferee is a public body, or

(b) on an instrument certified by the Secretary of State to the Commissioners for Her Majesty's Revenue and Customs as made for the purposes of such a transfer scheme, or as made for purposes connected with such a transfer scheme.

(2) But where, by virtue of sub-paragraph (1), stamp duty is not chargeable on a scheme or instrument, the scheme or instrument is to be treated as duly stamped only if—

(a) in accordance with section 12 of the Stamp Act 1891 (c. 39) it has been stamped with a stamp denoting either that it is not chargeable to duty or that it has been duly stamped, or

(b) it is stamped with the duty to which it would be chargeable apart from sub-paragraph (1).

(3) In this paragraph “instrument” has the same meaning as in the Stamp Act 1891.

Part 6 — Transfers etc involving private persons

Meaning of “relevant transfer” in Part 6 of Schedule

33

In this Part of this Schedule “relevant transfer” means a transfer, in accordance with a transfer scheme, from or to a person other than a public body.

Transfers of trading stock

34

(1) This paragraph applies if under a relevant transfer trading stock of the transferor is transferred to the transferee.

(2) Sub-paragraphs (3) and (4) have effect in computing for any corporation tax or income tax purpose both the profits of the trade in relation to which the stock is trading stock immediately before the transfer takes effect (“the transferor's trade”) and—

(a) if the stock falls immediately after the transfer takes effect to be treated as trading stock of the transferee, the profits of the trade in relation to which it falls to be treated as trading stock (“the transferee's trade”);

(b) otherwise, the consideration given by the transferee, or the expenditure incurred by the transferee, for the acquisition of the stock.

(3) The stock must be taken to have been—

(a) disposed of by the transferor in the course of the transferor's trade,

(b) if sub-paragraph (2)(a) applies, acquired by the transferee in the course of the transferee's trade, and

(4) The value of the stock is to be taken to be—

(a) if consideration is given to the transferor in respect of the transfer, an amount equal to the value of the consideration, or

(b) if no such consideration is given, nil.

(5) For the purposes of this paragraph consideration given to a person connected with the transferor is to be treated as given to the transferor.

(6) In this paragraph “trading stock” has the meaning given by section 174 of ITTOIA 2005 (as respects income tax) or section 163 of CTA 2009 (as respects corporation tax).

(7) For the purposes of this paragraph whether a person is connected with another person is determined in accordance with section 1122 of CTA 2010 (as respects corporation tax) or section 993 of ITA 2007 (as respects income tax).

Capital allowances: determination of disposal value of plant or machinery

35

(1) This paragraph applies to a relevant transfer of plant or machinery which is a disposal event for the purposes of Part 2 of CAA 2001 (capital allowances for plant and machinery).

(2) For the purposes of the application of section 61 of that Act (disposal events and disposal value) in relation to the transferor, the disposal value of the plant or machinery is to be treated—

(a) if a capital sum is received by the transferor by way of consideration or compensation in respect of the transfer, as an amount equal to that sum, or

(b) if no such sum is received, as nil.

(3) For the purposes of this paragraph a sum received by a person connected with the transferor is to be treated as received by the transferor.

(4) Section 88 of CAA 2001 (sales at an undervalue) is to be disregarded.

(5) This paragraph is subject to sections 63(5) and 68 of CAA 2001.

Capital allowances: determination of disposal value of fixtures

36

(1) This paragraph applies to a relevant transfer if—

(a) it is a disposal event for the purposes of Part 2 of CAA 2001, and

(b) by virtue of the transfer a person is treated by section 188 of that Act as ceasing to own a fixture.

(2) For the purposes of the application of section 196 of that Act in relation to the transferor, the disposal value of the fixture is to be treated—

(a) if a capital sum is received by the transferor by way of consideration or compensation in respect of the transfer, as an amount equal to that portion of that sum which falls (or, if the person to whom the disposal is made were entitled to an allowance, would fall) to be treated for the purposes of Part 2 of that Act as expenditure incurred by that person on the provision of the fixture, or

(b) if no such sum is received, as nil.

(3) For the purposes of this paragraph a sum received by a person connected with the transferor is to be treated as received by the transferor.

(4) This paragraph is subject to section 63(5) of CAA 2001.

Capital allowances: section 265 of CAA 2001 not to apply in relation to transferee

37

(1) This paragraph applies in relation to a relevant transfer.

(2) For the purposes of the application of Part 2 of CAA 2001 in relation to the transferee, section 265 of that Act (successions: general) is to be disregarded.

Capital allowances: determination of capital value of industrial buildings etc.

38

(1) This paragraph applies for the purposes of Part 3 of CAA 2001, and the other provisions of that Act which are relevant to that Part, in relation to a relevant transfer of the relevant interest in an industrial building or structure.

(2) This paragraph is subject to section 36 of FA 2007 (which makes provision about balancing adjustments etc under Part 3 of CAA 2001).

(3) The transfer is to be treated as a sale of that relevant interest.

(4) The net proceeds of that sale are to be treated—

(a) if a capital sum is received by the transferor by way of consideration or compensation in respect of the transfer, as an amount equal to that sum, or

(b) if no such sum is received, as nil.

(5) For the purposes of this paragraph a sum received by a person connected with the transferor is to be treated as received by the transferor.

(6) Sections 567 to 570 of CAA 2001 (sales treated as being for alternative amount) are not to have effect in relation to that sale.

Chargeable gains: disposals not to be treated as made at market value

39

(1) Section 17 of TCGA 1992 (disposals and acquisitions treated as made at market value) is not to have effect in relation to—

(a) a disposal constituted by a relevant transfer,

(b) a disposal to which sub-paragraph (2) applies, or

but this sub-paragraph does not apply if the person making the disposal is connected with the person making the acquisition.

(2) This sub-paragraph applies to a disposal if—

(a) it is made in accordance with provision contained in a transfer scheme by virtue of paragraph 4, 6 or 12 of Schedule 12 to this Act,

(b) the person making the disposal or the person to whom the disposal is made is a person other than a public body, and

(3) If sub-paragraph (1) applies to the disposal of an asset, the disposal is to be taken (in relation to the person making the acquisition as well as the person making the disposal) to be—

(a) in a case where consideration in money or money's worth is given by the person making the acquisition or on his behalf in respect of the vesting of the asset in him, for a consideration equal to the amount or value of that consideration, or

(b) in a case where no such consideration is given, for a consideration of nil.

Loan relationships

40

(1) Section 444 of CTA 2009 (transactions not at arm's length) is not to have effect where, as a result of a relevant transfer, the transferee replaces the transferor as a party to a loan relationship.

(2) Expressions used in this paragraph and in Part 5 of CTA 2009 have the same meanings in this paragraph as in that Part.

Part 7 — Other provisions concerning transfers

Chargeable gains: value shifting

41

No transfer scheme is to be regarded as a scheme or arrangement for the purposes of section 30 of TCGA 1992.

Group relief

42

The power of the Secretary of State to make a transfer scheme is not to be regarded as constituting—

(a) arrangements falling within section 154(3) or 155(3) of CTA 2010 (arrangements for transfer of company to another group or consortium), or

(b) option arrangements for the purposes of section 173 of CTA 2010.

Modification of transfer schemes and determinations under paragraph 9(1)(d) or 27(1)(c): companies

43

(1) This paragraph applies if—

(a) a company delivers a company tax return,

(b) subsequently, an event mentioned in sub-paragraph (2) below occurs, and

(2) The events are—

(a) the making of an agreement modifying a transfer scheme under paragraph 15 of Schedule 12 to this Act;

(b) a determination or modification of a determination under the provision mentioned in paragraph 9(1)(d) or 27(1)(c) above.

(3) The return may be amended under paragraph 15 of Schedule 18 to FA 1998 so as to remedy the error, ignoring any time limit which would otherwise prevent that happening.

(4) But an amendment may not be made in reliance on sub-paragraph (3) above more than 12 months after the end of the accounting period of the company during which (as the case may be)—

(a) the agreement is made, or

(b) the determination or modification of a determination is made.

(5) Sub-paragraphs (6) and (7) below apply if the company does not amend the return so as to remedy the error before the end of that 12 month period.

(6) A discovery assessment or a discovery determination may be made in relation to the error, ignoring any time limit which would otherwise prevent that happening.

(7) But such an assessment or determination may not be made in reliance on sub-paragraph (6) above more than 24 months after the end of the accounting period mentioned in sub-paragraph (4) above.

(8) Expressions used in this paragraph and in Schedule 18 to FA 1998 have the same meaning in this paragraph as in that Schedule.

Modification of transfer schemes: other persons and partnerships

44

(1) This paragraph applies if—

(a) a person delivers a return under section 8, 8A or 12AA of TMA 1970,

(b) subsequently, an agreement is made modifying a transfer scheme under paragraph 15 of Schedule 12 to this Act, and

(2) The return may be amended under section 9ZA or 12ABA of TMA 1970 so as to remedy the error, ignoring any time limit which would otherwise prevent that happening.

(3) But an amendment may not be made in reliance on sub-paragraph (2) above more than 12 months after the end of the year of assessment during which the agreement modifying the transfer scheme is made.

(4) If the return is amended under section 12ABA in reliance on sub-paragraph (2) above, subsection (3) of that section applies, ignoring any time limit which would otherwise prevent the officer from proceeding under that subsection.

(5) Sub-paragraphs (6) and (7) below apply if the return is not amended under section 9ZA or 12ABA so as to remedy the error before the end of the 12 month period mentioned in sub-paragraph (3) above.

(6) An officer of Revenue and Customs may proceed under section 29(1) or 30B(1) and (2) of TMA 1970 in relation to the error, ignoring any time limit which would otherwise prevent the officer from so proceeding.

(7) But an assessment or an amendment may not be made in reliance on sub-paragraph (6) above more than 24 months after the end of the year of assessment mentioned in sub-paragraph (3) above.

Power to make further provision in relation to transfer schemes

45

(1) The Treasury may by regulations make provision for varying the way in which a relevant tax has effect from time to time (including by virtue of this Schedule) in relation to—

(a) any property, rights or liabilities transferred in accordance with a transfer scheme, or

(b) anything done for the purposes of, or in relation to, or in consequence of, the transfer of any property, rights or liabilities in accordance with a transfer scheme.

(2) The provision that may be made under sub-paragraph (1)(a) includes, in particular, provision for—

(a) a tax provision not to apply, or to apply with modifications, in relation to any property, rights or liabilities transferred;

(b) any property, rights or liabilities transferred to be treated in a specified way for the purposes of a tax provision;

(c) the Secretary of State to be required or permitted, with the consent of the Treasury, to determine, or to specify the method for determining, anything which needs to be determined for the purposes of any tax provision so far as relating to any property, rights or liabilities transferred.

(3) The provision that may be made under sub-paragraph (1)(b) includes, in particular, provision for—

(a) a tax provision not to apply, or to apply with modifications, in relation to anything done for the purposes of, or in relation to, or in consequence of, the transfer;

(b) anything done for the purposes of, or in relation to, or in consequence of, the transfer to have or not to have a specified consequence or to be treated in a specified way;

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