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Transfers within groups

Special rules apply to achieve tax-neutrality in relation to intra-group transfers¹. These rules apply when:

1. Ìý

   (a)ÌýÌýÌýÌý a company (A) which is a party to a derivative contract is replaced directly or indirectly by another company (B), where the two companies are members of the same group and are within the charge to corporation tax². For this purpose a group is a parent company and its 75% subsidiaries³

2. Ìý

   (b)ÌýÌýÌýÌý the replacement occurs as a result of a series of transactions which have the same effect as a related transaction between A and B where each of A and B was a member of the same group at any time in the course of the series of transactions⁴

3. Ìý

   (c)ÌýÌýÌýÌý B becomes a party to a derivative contract which contains⁵:

4. 1. Ìý

      (1)ÌýÌýÌýÌý equivalent rights to those of a contract to which A has ceased to be a party; or

   2. Ìý

      (2)ÌýÌýÌýÌý equivalent obligations to those of such a contract; or

   3. Ìý

      (3)