Corporation Tax (Northern Ireland) Act 2015

6 (1) Section 61 (disposal events and disposal values) is amended as follows.

(2) In the Table in subsection (2)—

(a) in item 1, in the first column, after “item 2” insert “or 2A”, and

(b) after item 2 insert—

“2A. Sale of the plant or machinery where— (a) the sale is at less than market value, (b) the condition in subsection (4A) is met by the seller, and (c) the condition in subsection (4B) is met by the buyer.

The market value of the plant or machinery at the time of the sale.”

(3) After subsection (4) insert—

“(4A) The condition referred to in paragraph (b) of item 2A in the Table is met by the seller if—

(a) the seller is—

(i) a company, or

(ii) a partnership whose partners include one or more companies, and

(b) before the sale the plant or machinery is used wholly or partly for the purposes of a qualifying activity that is not an NI rate activity.

(4B) The condition referred to in paragraph (c) of item 2A in the Table is met by the buyer if—

(a) the buyer is a Northern Ireland SME company, a NIRE company or a Northern Ireland firm in the chargeable period of the buyer in which the plant or machinery is bought,

(b) the buyer’s expenditure on the acquisition of the plant or machinery is qualifying expenditure under this Part or Part 6 (research and development allowances), and

(c) the plant or machinery is used by the buyer wholly or partly for the purposes of an NI rate activity.”