781Character of credits and debits brought into account as a result of section 780U.K.
(1)For the purposes of Chapter 6 (how credits and debits are given effect) credits or debits brought into account as a result of section 780 take their character from the purposes for which the relevant asset was held by the transferee immediately after the transfer.
(2)But subsection (1) does not apply if conditions A and B are met.
(3)Condition A is that immediately after the transfer the relevant asset was held by the transferee for the purposes of a trade, business or concern within section 747, 748 or 749.
(4)Condition B is that the transferee ceased to carry on that trade, business or concern before it ceased to be a member of the group.
(5)If conditions A and B are met, a credit or debit brought into account because of section 780 is treated for the purposes of Chapter 6 as a non-trading credit or debit.
(6)References in this section to “the transferee” and the relevant asset” must be read in accordance with section 780.