Paragraph 13

After section 187 insert—

“Deemed disposal under section 185: ATED-related gains and losses

187A

(1)

This section applies if—

(a)

(ignoring subsections (2) and (3)) a gain or loss would accrue to a company on a disposal of an asset deemed to have been made by virtue of section 185(2), and

(b)

that gain or loss is an ATED-related gain chargeable to, or an ATED-related loss allowable for the purposes of, capital gains tax under section 2B.

(2)

That gain or loss does not accrue to the company on that disposal.

(3)

But, on a subsequent disposal of the whole or part of the asset, the whole or a corresponding part of the gain or loss—

(a)

is deemed to accrue to the company (in addition to any gain or loss that actually accrues on that subsequent disposal), and

(b)

(if that would not otherwise be the case) is to be treated as an ATED-related gain or loss accruing on a relevant high value disposal.

(4)

Nothing in this section affects the treatment, for the purposes of this Act, of any gain or loss which is not ATED-related and accrues on the disposal of the asset deemed to have been made by virtue of section 185(2).”