Paragraph 14

(1)

This paragraph applies where part of a trade carried on by a subsidiary of a milk marketing board is transferred under section 11 above to more than one qualifying body (“the successor bodies”) and the remainder is retained by the subsidiary.

(2)

There shall be apportioned amongst the subsidiary and the successor bodies—

(a)

the unallowed tax losses of the subsidiary, and

(b)

any expenditure incurred by the subsidiary before the date of the transfer and by reference to which capital allowances may be made.

(3)

The apportionment under sub-paragraph (2) above shall be made in such manner as is just and reasonable having regard—

(a)

to the extent to which the losses and expenditure mentioned in that sub-paragraph are attributable to the different parts of the trade, and

(b)

as respects the apportionment of such expenditure, to the division of the subsidiary’s assets amongst itself and the successor bodies.

(4)

In this paragraph, “unallowed tax losses” has the same meaning as in paragraph 12 above.

Notes on Part I

Modifications

C1: Sch. 2 Pt. I modified (retrospectively) by 1996 c. 8, s. 203(1)