Taxation of Chargeable Gains Act 1992 Schedule 2 paragraph 5

Election by principal company of group

Section 5 deals with how the pooling election under paragraph 4 of Schedule 2 operates where companies belong to a group, requiring the principal company to make the election on behalf of all group members.

• Where companies are members of a group, only the principal company may make a pooling election under paragraph 4, and that election automatically applies to all other group members at the relevant time.
• The "relevant time" is the first occasion after 19th March 1968 when any company then in the group disposes of quoted securities of the kind covered by the election — this is also the "first relevant disposal" for the group.
• The group election does not override a company's own prior position if that company was outside the group after 19th March 1968 and before the relevant time, and during that period it had already made (or been treated as making) its own election, or had disposed of such securities without electing within the permitted time limit.
• Once the election takes effect at the relevant time, it continues to bind a company even if that company subsequently leaves the group.