Corporation Tax Act 2010

[F1 676 Company reconstructions U.K.

(1) Subsection (2) applies if, before the change in ownership—

(a) a trade carried on by another company (“the predecessor company”) is transferred to the company, and

(b) the transfer is a transfer to which Chapter 1 of Part 22 applies (transfers of trade without a change of ownership).

(2) In determining any relief available to the company by virtue of [F2 Chapter 1 of Part 22], this Chapter applies as if—

(a) references to a trade carried on by the company included the trade as carried on by the predecessor company or by any predecessor of that company, and

(b) any loss sustained by the predecessor company or any predecessor of that company had been sustained by the company.

(3) Subsection (4) applies if, after the change in ownership—

(a) a trade carried on by the company is transferred to another company (“the successor company”), and

(b) the transfer is a transfer to which Chapter 1 of Part 22 applies.

(4) In determining—

(a) any relief available to the company under section 45[F3 , 45A, 45B, 303B, 303C or 303D] (carry forward of trading losses), or

(b) any relief available to the successor company or any successor of that company by virtue of section [F4 Chapter 1 of Part 22],

this Chapter applies as if references to a trade carried on by the company included the trade as carried on by the successor company or by any successor of that company.

(5) For the purposes of this section a company (“company A”) is a predecessor of another company (“company B”), and company B is a successor of company A, if the first or second condition is met.

(6) The first condition is that Chapter 1 of Part 22 applies in relation to company A and company B as respectively the predecessor and the successor within the meaning of that Chapter.

(7) The second condition is that—

(a) Chapter 1 of Part 22 applies in relation to company A and a third company (“company C”) as respectively the predecessor and the successor within the meaning of that Chapter, and

(b) company C is (whether by virtue of the first condition or this condition) a predecessor of company B.]

Textual Amendments

F1 S. 676 substituted (with effect in accordance with s. 32(2) of the amending Act) by Finance Act 2013 (c. 29), s. 32(1)

F2 Words in s. 676(2) substituted (with effect in accordance with Sch. 10 para. 32 of the amending Act) by Finance Act 2019 (c. 1), Sch. 10 para. 28(a)

F3 Words in s. 676(4)(a) inserted (with effect in accordance with Sch. 10 para. 32 of the amending Act) by Finance Act 2019 (c. 1), Sch. 10 para. 28(b)

F4 Words in s. 676(4)(b) substituted (with effect in accordance with Sch. 10 para. 32 of the amending Act) by Finance Act 2019 (c. 1), Sch. 10 para. 28(c)