Taxation of Chargeable Gains Act 1992 section 179ZA

Claim for adjustment of calculations under section 179

Section 179ZA allows a company to claim a reduction in the degrouping charge that arises under section 179 when a company leaves a group, ensuring that gains are only taxed to the extent that is just and reasonable.

• When a company leaves a group and a degrouping gain arises (or would arise but for certain relieving provisions), a claim can be made to reduce that gain by a just and reasonable amount.
• Where the degrouping charge is spread across one or more group disposals, the company (or companies acting jointly) that made those disposals can submit the claim; in all other cases, the departing company itself makes the claim.
• In deciding what reduction is just and reasonable, particular regard must be given to any transaction that directly or indirectly led to the company or an associated company acquiring the asset giving rise to the gain.
• Where a reduction (the "permitted deduction") is granted, the deemed reacquisition cost of the asset is adjusted from market value to market value less the permitted deduction, preserving the correct base cost for any future disposal.