Part 11Contributions

Chapter 2Contribution allowances

Effect of transfers of C’s trade on contribution allowances under Parts 3, 4 and 5

542Transfer of C’s trade or relevant activity

(1)Subsections (2) and (3) apply for the purposes of contribution allowances under Parts 3 to 5 if—

(a)C’s contribution was made for the purposes of C’s trade or relevant activity, and

(b)the whole or a part of the trade or relevant activity is subsequently transferred.

(2)If the whole of the trade or relevant activity is transferred, writing-down allowances for chargeable periods ending after the date of the transfer are to be made to the transferee instead of to the transferor.

(3)If a part of the trade or relevant activity is transferred, writing-down allowances for chargeable periods ending after the date of the transfer are to be made to the transferee instead of to the transferor to the extent that they are properly referable to the part transferred.