Capital Gains groups - companies

Question 1

How are transfer of assets within a capital gains group treated?

Answer 1

Automatically take place at a NGNL regardless of the price paid

Transferee company takes over the asset at cost plus indexation to the date of transfer

Question 2

When does a degrouping charge arise?

Answer 2

Where the transferee company leaves the gains group still owning the asset, within 6 years of the NGNL transfer

Question 3

How is the degrouping charge calculated?

Answer 3

Calculated as the gain which would have arisen, using MV as proceeds, at the date of NGNL transfer