Corporation Tax Act 2010

Corporation Tax Act 2010

2010 CHAPTER 4

Introduction

Part 22: Miscellaneous provisions

Chapter 1: Transfers of trade without a change of ownership

Section 953: Application of Chapter to further transfers of a trade

2833. This section deals with further transfers of trades. It is based on section 343(7) of ICTA.

2834. Subsection (1) spells out when the section applies.

2835. Under subsection (1)(a), there must be a transfer (the original transfer) which meets the ownership condition and the tax condition. Under section 940 of this Act, this Chapter applies to the original transfer.

2836. Under subsection (1)(b), there must be a further transfer (as defined).

2837. Under subsection (1)(c), the further transfer must take place at some time before the end of the period specified in subsection (7).

2838. It is implicit in section 343(7) that the ownership condition was met in relation to the original transfer only on or after the further transfer. Subsection (1)(d) lays this down as an express condition for this section to apply.

2839. If section 343(2) to (5) of ICTA already apply in relation to a transfer, there is no need to rely on section 343(7) of that Act. Accordingly, subsection (1)(e) lays down, as an express condition for this section to apply, that, were it not for this section, this Chapter would not apply to the further transfer.

2840. Subsection (2) applies the Chapter to the further transfer as well as to the original transfer.

2841. Subsection (3) explains how the references to “the successor” and “the predecessor” in this Chapter are to be interpreted in cases where the Chapter applies to a transfer by virtue of this section.

2842. Subsection (4) extends the scope of “the successor” in relation to the original transfer.

2843. Subsection (5) extends the scope of “the predecessor” in relation to the further transfer.

2844. Subsection (6) covers successive further transfers.

2845. Subsection (7) defines the period mentioned in subsection (1)(c).