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(1) This section applies where this Part—
(a) ceases to apply to a company by reason of section 128, and
(b) had applied to the company for a continuous period immediately before cessation of less than ten years.
(2) If the company disposes of a tax-exempt asset during the post-cessation period, liability to corporation tax shall be determined without regard to—
(a) any deemed disposal under section 111(2) that resulted in a gain,
(b) any deemed disposal under section 131(3), or
(c) any deemed disposal under section 125(2).
(3) In subsection (2)—
(a) “tax-exempt asset” means an asset that was involved (within the meaning of section 107(6)(a)) in the business of C (tax-exempt), and
(b) “the post-cessation period” means the period of two years beginning with the date of cessation.
This Act received Royal Assent on 19 July 2006: for provision as the application of this section see ss 109, 110, 145(1).