Corporation Tax Act 2010, Cross Heading: Introduction is up to date with all changes known to be in force on or before 04 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
(1)This Chapter contains rules for cases where a trade is transferred between companies within the charge to tax and certain conditions as to common ownership of the trade are met.
(2)Section [F2940B] explains when there is a transfer of a trade for the purposes of this Chapter.
(3)Sections [F3940C] to 943 contain provision about when this Chapter applies to a transfer of a trade.
(4)Sections [F4943A] to 950 set out the effects of this Chapter in relation to a transfer to which it applies.
(5)Sections 951 to 953 contain supplementary provision.
Textual Amendments
F1S. 940A: s. 938 renumbered as s. 940A (19.7.2011) by Finance Act 2011 (c. 11), Sch. 5 para. 3(1)(a)
F2Word in s. 940A(2) substituted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 5 para. 3(2)(a)
F3Word in s. 940A(3) substituted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 5 para. 3(2)(b)
F4Word in s. 940A(4) substituted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 62
(1)This section applies for the purposes of this Chapter.
(2)If, on a company ceasing to carry on a trade, another company begins to carry it on, there is a transfer of a trade.
(3)The trade that is transferred is referred to in this Chapter as “the transferred trade”.
(4)In relation to a transfer of a trade—
“the predecessor” means the company which ceases to carry on the trade, and
“the successor” means the company which begins to carry on the trade.
(5)In this Chapter, except in so far as the context otherwise requires—
(a)references to a trade include an office, and
(b)references to carrying on a trade include holding an office.
Textual Amendments
F5S. 940B: s. 939 renumbered as s. 940B (19.7.2011) by Finance Act 2011 (c. 11), Sch. 5 para. 3(1)(b)
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