Modifications etc. (not altering text)
C1 S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7
(1)This section applies if—
(a) a qualifying company resident in one member State (“ company A ”) transfers the whole or a part of a trade carried on by it in the United Kingdom to a qualifying company resident in another member State (“ company B ”),
(b) section 140A of TCGA 1992 (transfer of assets treated as no-gain no-loss disposal etc. ) applies in relation to the transfer, and
(c)immediately after the transfer company B—
(i)is resident in the United Kingdom, or
(ii)carries on in the United Kingdom through a [F1permanent establishment] a trade which consists of, or includes, the trade or the part of the trade transferred.
(2)If this section applies—
(a)the transfer itself does not give rise to any allowances or charges under this Act, and
(b)in relation to assets included in the transfer, anything done to or by company A before the transfer is to be treated after the transfer as having been done to or by company B.
(3)If, for the purposes of subsection (2)(b), expenditure falls to be apportioned between assets included in the transfer and other assets, the apportionment is to be made in a just and reasonable manner.
(4) In this section “ qualifying company ” means a body incorporated under the law of a member State.
(5) If this section applies, section 343(2) of ICTA does not apply (effect of company reconstruction without change of ownership).
Textual Amendments
F1 Words in s. 561(1)(c) substituted (with effect in accordance with s. 153(4) of the amending Act) by Finance Act 2003 (c. 14) , s. 153(1)(d)