SCHEDULE 10Tax
Part 2 Provisions relating to Part 5
Income Tax and Corporation Tax
Accrued income scheme
4
If a Part 5 transfer is a transfer of securities within the meaning of F1Chapter 2 of Part 12 of the Income Tax Act 2007, that Part does not apply to the transfer.
Discounted securities
5
Rights to receive amounts stated in certificates of deposit etc.
6
In the case of a Part 5 transfer of property consisting of a right to which section 56(2) of the Taxes Act 1988 applies, or a right mentioned in section 56A(1) of that Act, (rights stated in certificates of deposit etc.)F4, or a right falling within the definition of “deposit rights” in section 552(1) of ITTOIA 2005 it is not to be treated as a disposal of the right for the purposes of section 56(2) F5of the Taxes Act 1988 or Chapter 11 of Part 4 of ITTOIA 2005.
Non-qualifying offshore funds
7
In the case of a Part 5 transfer of property consisting of an asset mentioned in section 757(1)(a) or (b) of the Taxes Act 1988 (interests in non-qualifying offshore funds etc.), it is not to be treated as a disposal for the purposes of that section.
Futures and options
8
Loan relationships
9
(1)
Sub-paragraph (2) applies if, apart from this paragraph, a Part 5 transfer would be a related transaction for the purposes of F8Part 5 of the Corporation Tax Act 2009 (loan relationships .
(2)
The Part 5 transfer is to be disregarded for the purposes of F9that Part , except for the purpose of identifying any person in whose case any debit or credit not relating to the transaction is to be brought into account.
Exception from paragraphs 4 to 9
10
Paragraphs 4 to 9 do not apply if a compensating payment is made to the transferor.
Trading stock
11
(1)
Sub-paragraph (2) applies, in the case of a Part 5 transfer of property consisting of the trading stock of a trade, for the purpose of computing any profits of the trade for tax purposes.
(2)
If, because of the transfer, the trading stock is to be treated for that purpose as if it had been sold in the course of the trade, the amount realised on the sale is to be treated for that purpose as equal to its acquisition cost.
(3)
Sub-paragraph (2) has effect in spite of anything in F10 section 173 of ITTOIA 2005 or section 162 of the Corporation Tax Act 2009 (valuation of trading stock on cessation).
(4)
In this paragraph, trading stock and trade have the same meaning as in F11 section 174 of ITTOIA 2005 or (as the case may be) section 163 of the Corporation Tax Act 2009.