PART XVII TAX AVOIDANCE

CHAPTER VI MISCELLANEOUS

Migration etc. of company

765 Migration etc. of companies. C1

M11

Subject to the provisions of this section F1and section 765A, all transactions of the following classes shall be unlawful unless carried out with the consent of the Treasury, that is to say—

a

for a body corporate resident in the United Kingdom to cease to be so resident; or

b

for the trade or business or any part of the trade or business of a body corporate so resident to be transferred from that body corporate to a person not so resident; or

F2c

for a body corporate F3resident in the United Kingdom to cause or permit a body corporate not so resident over which it has control to create or issue any shares or debentures; or

d

except for the purpose of enabling a person to be qualified to act as a director, for a body corporate so resident to transfer to any person, or cause or permit to be transferred to any person, any shares or debentures of a body corporate not so resident over which it has control, being shares or debentures which it owns or in which it has an interest.

2

Nothing in subsection (1)(c) above shall apply to the giving to the bankers of the body corporate not resident in the United Kingdom of any security for the payment of any sum due or to become due from it to them by reason of any transaction entered into with it by them in the ordinary course of their business as bankers.

3

Nothing in subsection (1)(c) above shall apply to the giving by the body corporate not resident in the United Kingdom to an insurance company of any security for the payment of any sum due or to become due from that body corporate to that company by reason of any transaction entered into with that body corporate by that company in the ordinary course of that company’s business by way of investment of its funds.

4

Any consent granted by the Treasury under this section—

a

may be given either specially (that is to say, so as to apply only to specified transactions of or relating to a specified body corporate) or generally (that is to say, so as not only so to apply); and

b

may, if given generally, be revoked by the Treasury; and

c

may in any case be absolute or conditional; and

d

shall be published in such a way as to give any person entitled to the benefit of it an adequate opportunity of getting to know of it, unless in the opinion of the Treasury publication is not necessary for that purpose.