This section is designed to prevent avoidance of tax by a company by manupilating the " deferred gain " provisions of sections 130 and 133. For example, a company could transfer assets with a built-in gain, or assets on the acquisition of which a claim to roll-over was allowed, to a newly-formed subsidiary company, and then dispose of the shares in that company in circumstances in which no liability, or a reduced liability, to tax on the capital gain arises. This type of device is countered by effectively reinstating the deferred charge at the time the company leaves the group.
SECTION 135.
Question proposed: " That section 135 stand part of the Bill."
This does not conflict with minority shareholders' rights in any way under the Companies Act?
I cannot see how it would.
Question put and agreed to.