Part 22Miscellaneous provisions
Chapter 1Transfers of trade without a change of ownership
Supplementary
951Part of trade treated as separate trade
1
Subsection (2) applies (subject to subsection (5)) if—
a
a company (“the transferor”) ceases to carry on a trade (“trade X”) and another company (“the transferee”) begins to carry on the activities of trade X as part of its trade (“part X”), and
b
there would have been a transfer of trade X from the transferor to the transferee had the transferee begun to carry on part X as a separate trade.
2
This Chapter has effect as if the transferee carries on part X as a separate trade.
3
Subsection (4) applies (subject to subsection (5)) if—
a
a company (“the transferor”) ceases to carry on a part of a trade (“part Y”) and another company (“the transferee”) begins to carry on the activities of part Y as its trade or as part of its trade, and
b
there would have been a transfer of a trade (including as a result of subsection (2)) from the transferor to the transferee had the transferor been carrying on part Y as a separate trade.
4
This Chapter has effect as if the transferor had carried on part Y as a separate trade.
5
Subsections (2) and (4) are to be ignored for the purposes of sections 941(3) and (4) and 943(3).
6
If part of a trade is treated as a separate trade in accordance with subsection (4)—
a
references in section 945(2) to liabilities are to be read as references to liabilities apportioned under section 952, and
b
references in section 945(3) to assets are to be read as references to assets so apportioned.