623ATransitional provisions in respect of section 623

(1) In this section “the new definition” means section 616 as amended by section 56 of the Finance Act, 1999, and “the old definition” means that section as it had effect on the 10th day of February, 1999.

(2) Where—

(a) on the 11th day of February, 1999, a company ceases, for the purposes of section 616 and the provisions of this Part subsequent to that section, to be a member of a group by reason only of the substitution for the old definition of the new definition, and

(b) in consequence of ceasing to be such a member the company would, apart from this section, be treated by virtue of section 623(4) as selling an asset at any time,

the company shall not be treated as selling the asset at that time unless the conditions in subsection (3) become satisfied, assuming for that purpose that the old definition applies.

(3) The conditions referred to in subsection (2) are—

(a) that for the purposes of section 623, the company ceases at any time (in this subsection referred to as the “relevant time”) to be a member of the group referred to in subsection (2)(a),

(b) that, at the relevant time, the company (or an associated company also ceasing to be a member of that group at that time) owns, otherwise than as trading stock, the asset, or property on the acquisition of which a chargeable gain in relation to the asset has been deferred on a replacement of business assets, and

(c) that the time of acquisition of the asset referred to in section 623(2) fell within the period of 10 years ending with the relevant time.