Part 16Factoring of income etc
Chapter 1Transfers of income streams
752Application of Chapter
1
This Chapter applies if—
a
a company within the charge to corporation tax (“the transferor”) makes a transfer to another person (“the transferee”) of a right to relevant receipts (see subsection (2)), and
b
(subject to subsection (3)) the transfer of the right is not a consequence of the transfer to the transferee of an asset from which the right to relevant receipts arises.
2
“Relevant receipts” means any income—
a
which (but for the transfer) would be charged to corporation tax as income of the transferor, or
b
which (but for the transfer) would be brought into account in calculating profits of the transferor for the purposes of corporation tax.
3
Despite subsection (1)(b), this Chapter applies if the transfer of the right is a consequence of the transfer to the transferee of all rights under an agreement for annual payments; and for the purposes of subsection (1)(b) the transfer of an asset under a sale and repurchase agreement is not to be regarded as a transfer of the asset.
4
Section 753 makes provision as to the consequences of this Chapter applying.
5
For exclusions from this Chapter, see—
a
section 754 (amount otherwise taxed), and
b
section 755 (transfer by way of security).
6
Section 756 makes special provision about transfers of partnership shares.
7
Section 757 contains supplementary provisions.