Part 8Intangible fixed assets
Chapter 11Transfer of business or trade
Tax-neutral transfers
820Transfer of assets on European cross-border transfer of business
1
If the transfer of business includes intangible fixed assets that—
a
are chargeable intangible assets in relation to the transferor immediately before the transfer, and
b
are chargeable intangible assets in relation to the transferee immediately after the transfer,
the transfer of those assets is tax-neutral for the purposes of this Part.
2
This section applies only if the transfer of the business or part meets the genuine commercial transaction requirement (see section 831).
3
This section does not apply if the transferor is a transparent entity.
4
In this section—
“the transfer of business” means the transfer of business mentioned in section 819(2)(a) or (3)(a), and
“transparent entity” means a company which is resident in a member State other than the United Kingdom and does not have an ordinary share capital.
5
For the purposes of subsection (4) an entity is resident in a member State if—
a
it is within a charge to tax under the law of the State as being resident for that purpose, and
b
it is not regarded, for the purposes of any double taxation relief arrangements to which the State is a party, as resident in a territory not within a member State.