C1C2C3C4C5C6Part 8Intangible fixed assets
Pt. 8 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)
Pt. 8 modified (1.10.2011) by Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 2 para. 6(1); S.I. 2011/2329, art. 3
Pt. 8 modified (15.11.2011 for specified purposes, 30.3.2012 for E.W.) by Localism Act 2011 (c. 20), ss., 240(5)(o), Sch. 24 para. 1(3); S.I. 2012/628, art. 3(b)
Pt. 8 modified (1.4.2012) by Budget Responsibility and National Audit Act 2011 (c. 4), s. 29, Sch. 4 para. 3(1); S.I. 2011/2576, art. 5
Chapter 11Transfer of business or trade
The genuine commercial transaction requirement and clearance
831The genuine commercial transaction requirement and clearance
1
For the purposes of this Chapter, a reconstruction, transfer or merger meets the genuine commercial transaction requirement if it—
a
is effected for genuine commercial reasons, and
b
does not form part of a scheme or arrangements of which the main purpose, or one of the main purposes, is avoidance of liability to corporation tax, capital gains tax or income tax.
2
The conditions in subsection (1) are treated as met if before the reconstruction, transfer or merger—
a
the appropriate applicant has applied to the Commissioners for Her Majesty's Revenue and Customs, and
b
the Commissioners have notified the appropriate applicant that they are satisfied that the requirements of subsection (1) will be met.
3
In subsection (2) “the appropriate applicant” means—
a
in the case of an application about a reconstruction within section 818(1)(a), the transferee (within the meaning of that section),
b
in the case of an application about a transfer falling within section 820 because condition A in section 819(2) is met, the transferor and the transferee (within the meaning of section 819(2)),
c
in the case of an application about a transfer falling within section 820 because condition B in section 819(3) is met, the transferor and the transferee (within the meaning of section 819(3)),
d
in the case of an application about a merger falling within section 821(2), the transferor (as defined in section 823(2)), and
e
in the case of an application about a transfer falling within section 827(1)(a), the transferor (within the meaning of that section).
4
For the procedure on such an application, see section 832.
Pt. 8 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 6(1)