Taxation of Chargeable Gains Act 1992 Schedule 7ZA paragraph 2

Meaning of "trading company" and "trading group" in other provisions of Chapter 3 of Part 5

Paragraph 2 of Schedule 7ZA explains how the terms "trading company" and "trading group" are to be interpreted in certain other provisions of Chapter 3 of Part 5 of the Act, by reference to the definitions used for gift relief purposes but with specified modifications.

• This paragraph applies to provisions of Chapter 3 of Part 5 that are not already covered by paragraph 1(1) of this Schedule.
• In those remaining provisions, "trading company" and "trading group" carry the same meaning as they do for the purposes of gift relief under section 165, as defined in section 165A.
• However, the definitions are modified by requiring that subsections (7) and (12) of section 165A are to be ignored when interpreting those terms in this context.
• The effect is to apply a slightly different version of the trading company and trading group tests in these particular provisions compared to the standard gift relief definitions.