176 Depreciatory transactions within a group
Taxation of Chargeable Gains Act 1992 (1992 c 12) | Legislation

Losses attributable to depreciatory transactions

176  Depreciatory transactions within a group

(1)     This section has effect as respects a disposal of shares in, or securities of, a company (“the ultimate disposal”) if the value of the shares or securities has been materially reduced by a depreciatory transaction effected [on or after 31st March 1982]; and for this purpose “depreciatory transaction” means—

(a)     any disposal of assets at other than market value by one member of a group of companies to another, or

(b)     any other transaction satisfying the conditions of subsection (2) below,

except that a transaction shall not be treated as a depreciatory transaction to the extent that it consists of a payment which is required to be or has been brought into account, for the purposes of corporation tax on chargeable gains, in computing a chargeable gain or allowable loss accruing to the person making the ultimate disposal.

(2)     The conditions referred to in subsection (1)(b) above are—

(a)     that the company, the shares in which, or securities of which, are the subject of the ultimate disposal,

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