IFM40510 - Group issues: introduction

FA22/SCH2/PT4

Part 4 of the QAHC regime deals with the application of certain rules in relation to groups. In particular:

• the acquisition and disposal of assets by a QAHC to and from other group companies (IFM40520);
• ensuring the continuity of substantial shareholdings in relation to such intra-group transfers (IFM40530); and
• the correct interaction with the de-grouping rules in TCGA92/S179 (IFM40540).

These QAHC group rules turn off the normal tax neutral rules (CG45300P+) that apply to intra-group transfers in those circumstances where assets are moving into or out of a QAHC ring fence business.

The normal tax neutral rules for intra-group transfers will apply for transfers:

• from the QAHC ring fence business of one QAHC to the QAHC ring fence business of another QAHC; and
• from the non-QAHC ring fence business of a QAHC to the QAHC non-ring fence business of another QAHC, or to and from any other group company which is not a QAHC.

TCGA92/S190 – alternative collection power

TCGA92/S190 is an alternative collection power for unpaid corporation tax in respect of chargeable gains. It can require the unpaid tax to be paid by, for example, the principal member of a chargeable gains group. Where a QAHC is a principal company of a group it therefore may have to pay any unpaid tax due from members of its group. Guidance on TCGA92/S190 can be found at CG45973.