HC Deb 07 July 2004 vol 423 cc955-6

20B (1) Part 1 of Schedule 7 (group relief) applies to—

  1. a transaction to which paragraph 10 applies, and
  2. a transaction that is a chargeable transaction by virtue of paragraph 15,
with these modifications.

(2) In paragraph 3(1)(a), for "the purchaser" substitute "a partner who was a partner at the effective date of the relevant transaction ("the relevant partner")".

(3) In paragraph 3(1), for paragraph (b) substitute—

  1. "(b) at the time the relevant partner ceases to be a member of the same group as the vendor ("the relevant time"), a chargeable interest is held by or on behalf of the members of the partnership and that chargeable interest—
    1. (i) was acquired by or on behalf of the partnership under the relevant transaction, or
    2. (ii) is derived from a chargeable interest so acquired,
and has not subsequently been acquired at market value under a chargeable transaction for which group relief was available but was not claimed,".

(4) In paragraph 3(3), for the words from "the transferee company" to the end substitute "or on behalf of the partnership and to the proportion in which the relevant partner is entitled at the relevant time to share in the income profits of the partnership.".

(5) In paragraph 3(4), omit the definition of "relevant associated company".

(6) In paragraphs 4 to 6, for "the purchaser" (wherever appearing) substitute "the relevant partner".