Common use of CHARGEABLE GAINS Clause in Contracts

CHARGEABLE GAINS. 3.18.1 In determining the liability to corporation tax on chargeable gains in respect of an asset which has been acquired by the Company, or which the Company has agreed to acquire (whether conditionally, contingently or otherwise): (a) the sums allowable as a deduction will be determined solely in accordance with TCGA s38 (Acquisition and disposal costs etc) and s53 (The indexation allowance and interpretative provisions); (b) the amount or value of the consideration, determined in accordance with TCGA s38(1)(a), will not be less than the amount or value of the consideration actually given by it for the asset; (c) the amount of expenditure on enhancing the value of the asset, determined in accordance with TCGA s38(1)(b), will not be less than the amount or value of all expenditure actually incurred by it on that asset. 3.18.2 No asset owned or agreed to be acquired by the Company (other than plant and machinery in respect of which it is entitled to capital allowances) is a wasting asset within the meaning of TCGA s44 (Meaning of "wasting asset"). 3.18.3 The Company is not owed a debt (not being a debt on a security), upon the disposal or satisfaction of which a liability to corporation tax on chargeable gains will arise by reason of TCGA s251 (Debts: General provisions). 3.18.4 The Company has not claimed nor is it entitled to claim under TCGA s253 (Relief for loans to traders) that an allowable loss has accrued in respect of a loan made by it. 3.18.5 No part of the consideration given by the Company for a new holding of shares (within the meaning of TCGA s77 (Reorganisation or reduction of share capital: Application of Sections 127 to 131)) will be disregarded by virtue of TCGA s128(2) (Consideration given or received by holder).

CHARGEABLE GAINS. 3.18.1 3.14.1 In determining the liability to corporation tax on chargeable gains in respect of an asset which has been acquired by the Company, or which the Company has agreed to acquire (whether conditionally, contingently or otherwise): (a) the sums allowable as a deduction will be determined solely in accordance with TCGA s38 (Acquisition and disposal costs etc) and s53 (The indexation allowance and interpretative provisions); (b) the amount or value of the consideration, determined in accordance with TCGA s38(1)(a), will not be less than the amount or value of the consideration actually given by it for the asset; (c) the amount of expenditure on enhancing the value of the asset, determined in accordance with TCGA s38(1)(b), will not be less than the amount or value of all expenditure actually incurred by it on that asset. 3.18.2 3.14.2 No asset owned or agreed to be acquired by the Company (other than plant and machinery in respect of which it is entitled to capital allowances) is a wasting asset within the meaning of TCGA s44 (Meaning of "wasting asset"). 3.18.3 3.14.3 The Company is not owed a debt (not being a debt on a security), upon the disposal or satisfaction of which a liability to corporation tax on chargeable gains will arise by reason of TCGA s251 (Debts: General provisions). 3.18.4 The Company has not claimed nor is it entitled to claim under TCGA s253 (Relief for loans to traders) that an allowable loss has accrued in respect of a loan made by it. 3.18.5 3.14.4 No part of the consideration given by the Company for a new holding of shares (within the meaning of TCGA s77 s126 (Reorganisation or reduction of share capital: Application of Sections 127 to 131)) will be disregarded by virtue of TCGA s128(2) (Consideration given or received by holder).