Section 195D Company that receives mixed consideration: N does not exceed CF1

(1)

This section applies to a mixed-consideration swap if—

(a)

the no gain/no loss amount (“N”) of the company that receives the mixed consideration (“company R”) does not exceed

(b)

the amount of non-licence consideration (“C”) which company R receives.

(2)

As regards the licence, or each licence, which company R acquires, company R is to be treated as if it had acquired the licence for nil consideration.

(3)

In a case where company R disposes of only one licence, company R is to be treated as if, on the disposal of the licence, there had arisen a gain of—

C - N

(4)

In a case where company R disposes of two or more licences, as regards each licence disposed of, company R is to be treated as if, on the disposal of the licence, there had arisen a gain of—

(C - N) \times \frac{D}{TD}

where—

D is the value of the licence disposed of, and

TD is total value of all the licences disposed of.

Annotations

Textual amendments

F1: Ss. 195A-195E inserted (with effect in accordance with Sch. 40 para. 8 of the amending Act) by Finance Act 2009 (c. 10), Sch. 40 para. 5