Part 5Loan Relationships
Chapter 13European cross-border transfers of business
Exception for tax avoidance cases
426Tax avoidance etc
(1)
This Chapter does not apply in relation to the transfer of business if—
(a)
the transfer of business is not effected for genuine commercial reasons, or
(b)
the transfer of business forms part of a scheme or arrangements of which the main purpose, or one of the main purposes, is avoiding liability to corporation tax, capital gains tax or income tax.
(2)
But subsection (1) does not prevent this Chapter from applying if before the transfer of business—
(a)
the companies mentioned in section 421(3)(a), (4)(a) or (5)(a) have applied to the Commissioners for Her Majesty's Revenue and Customs, and
(b)
the Commissioners have notified them that they are satisfied that subsection will not have that effect.