Taxation of Chargeable Gains Act 1992 section 38

Degrouping: time when deemed sale and reacquisition treated as taking place

Section 38 of Schedule 7AC adjusts the timing of the deemed sale and reacquisition that arises under the degrouping rules, so that where the substantial shareholding exemption would have applied, the deemed disposal is treated as occurring immediately before the degrouping event rather than immediately after the original intra-group transfer.