sec.406Exemption—intra-group transfers of property

### sec.406 Exemption—intra-group transfers of property Transfer duty or vehicle registration duty is not imposed on a transfer, or agreement for the transfer, of dutiable property carried out for a corporate reconstruction if the conditions in subsection (2) are complied with. See section 404 (How part applies to particular transactions). For subsection (1) , the conditions are as follows— the transferor did not hold, and the transferee will not hold, the property as trustee; the transferor and transferee of the property are group companies; the dutiable transaction has not been made under an arrangement under which— part or all of the consideration for the dutiable transaction has or is to be provided or received, directly or indirectly by a person other than a group company; or a group company is to be enabled to provide any of the consideration by a person other than as mentioned in subsection (3) ; or a group company is to dispose of any of the consideration through a payment or other disposition— to a person other than a group company; or to a person other than by way of loan on ordinary commercial terms; the property transferred is, at the time of the transfer, group property under section 407 . For subsection (2) (c) (ii) , consideration may be provided— by a financial institution by way of loan on ordinary commercial terms; or by a group company; or under an offer and sale of shares to the public in the circumstances mentioned in section 412 (4) (b) . s 406 amd 2002 No. 65 ss 30 , 3 (2) sch (sec.406-ssec.1) Transfer duty or vehicle registration duty is not imposed on a transfer, or agreement for the transfer, of dutiable property carried out for a corporate reconstruction if the conditions in subsection (2) are complied with. See section 404 (How part applies to particular transactions). (sec.406-ssec.2) For subsection (1) , the conditions are as follows— the transferor did not hold, and the transferee will not hold, the property as trustee; the transferor and transferee of the property are group companies; the dutiable transaction has not been made under an arrangement under which— part or all of the consideration for the dutiable transaction has or is to be provided or received, directly or indirectly by a person other than a group company; or a group company is to be enabled to provide any of the consideration by a person other than as mentioned in subsection (3) ; or a group company is to dispose of any of the consideration through a payment or other disposition— to a person other than a group company; or to a person other than by way of loan on ordinary commercial terms; the property transferred is, at the time of the transfer, group property under section 407 . (sec.406-ssec.3) For subsection (2) (c) (ii) , consideration may be provided— by a financial institution by way of loan on ordinary commercial terms; or by a group company; or under an offer and sale of shares to the public in the circumstances mentioned in section 412 (4) (b) . - (a) the transferor did not hold, and the transferee will not hold, the property as trustee; - (b) the transferor and transferee of the property are group companies; - (c) the dutiable transaction has not been made under an arrangement under which— (i) part or all of the consideration for the dutiable transaction has or is to be provided or received, directly or indirectly by a person other than a group company; or (ii) a group company is to be enabled to provide any of the consideration by a person other than as mentioned in subsection (3) ; or (iii) a group company is to dispose of any of the consideration through a payment or other disposition— (A) to a person other than a group company; or (B) to a person other than by way of loan on ordinary commercial terms; - (i) part or all of the consideration for the dutiable transaction has or is to be provided or received, directly or indirectly by a person other than a group company; or - (ii) a group company is to be enabled to provide any of the consideration by a person other than as mentioned in subsection (3) ; or - (iii) a group company is to dispose of any of the consideration through a payment or other disposition— (A) to a person other than a group company; or (B) to a person other than by way of loan on ordinary commercial terms; - (A) to a person other than a group company; or - (B) to a person other than by way of loan on ordinary commercial terms; - (d) the property transferred is, at the time of the transfer, group property under section 407 . - (i) part or all of the consideration for the dutiable transaction has or is to be provided or received, directly or indirectly by a person other than a group company; or - (ii) a group company is to be enabled to provide any of the consideration by a person other than as mentioned in subsection (3) ; or - (iii) a group company is to dispose of any of the consideration through a payment or other disposition— (A) to a person other than a group company; or (B) to a person other than by way of loan on ordinary commercial terms; - (A) to a person other than a group company; or - (B) to a person other than by way of loan on ordinary commercial terms; - (A) to a person other than a group company; or - (B) to a person other than by way of loan on ordinary commercial terms; - (a) by a financial institution by way of loan on ordinary commercial terms; or - (b) by a group company; or - (c) under an offer and sale of shares to the public in the circumstances mentioned in section 412 (4) (b) .