- Latest available (Revised)
- Original (As enacted)
This is the original version (as it was originally enacted).
13(1)If, apart from this paragraph—
(a)the transferor would be treated for the purposes of the Corporation Tax Acts as having ceased, by virtue of a relevant transfer taking effect, to carry on any trade, and
(b)the transferee would be treated as having begun, on that transfer taking effect, to carry it on,
the trade is not to be treated as permanently discontinued, nor a new trade as set up, for the purposes of the allowances and charges provided for by the Capital Allowances Acts, but sub-paragraphs (2) to (4) are to apply.
(2)Subject to sub-paragraphs (3) and (4), in a case falling within sub-paragraph (1)—
(a)there are to be made to or on the transferee in accordance with the Capital Allowances Acts all such allowances and charges as would, if the transferor had continued to carry on the trade, have fallen to be made to or on the transferor, and
(b)the amount of any such allowance or charge is to be computed as if—
(i)the transferee had been carrying on the trade since the transferor began to do so, and
(ii)everything done to or by the transferor had been done to or by the transferee (but so that the relevant transfer itself, so far as it relates to any assets in use for the purpose of the trade, shall not be treated as giving rise to any such allowance or charge).
(3)For the purposes of the Corporation Tax Acts, only such amounts (if any) as may be specified in or determined in accordance with an order made by the Secretary of State by statutory instrument are to be allocated to the transferee in respect of expenditure by reference to which capital allowances may be made by virtue of sub-paragraph (2) in relation to anything to which the transfer relates.
(4)Sub-paragraph (2) is to affect the amounts falling to be taken into account in relation to the transferor as expenditure by reference to which capital allowances may be made only so far as necessary to give effect to a reduction of any such amount by a sum equal to so much of that amount as is allocated to the transferee as mentioned in sub-paragraph (3).
(5)An order under sub-paragraph (3) may include provision—
(a)for a determination to be made by the Secretary of State in a manner described in the order,
(b)for a determination to be made by reference to factors so described or to the opinion of a person so described, and
(c)for a determination to be capable of being modified (on one or more occasions) in a manner and in circumstances so described.
(6)The Treasury’s consent is required for the making or modification of a determination of any such amount as is mentioned in sub-paragraph (3).
(7)The transferee’s consent is also required for such a modification after the relevant transfer takes effect.
(8)In determining whether sub-paragraph (1) has effect in relation to a relevant transfer in a case where—
(a)the transferor continues to carry on any trade or part of a trade after the transfer takes effect, or
(b)the transferee was carrying on any trade before the transfer takes effect,
the trade or part of a trade which is continued, or was being carried on, shall for the purposes of that sub-paragraph be treated in relation to any trade or part of a trade which is transferred by virtue of the transfer as a separate trade and shall accordingly be disregarded.
(9)If there is a determination or a modification of a determination for any purposes of this paragraph, all necessary adjustments—
(a)must be made by making assessments or by repayment or discharge of tax, and
(b)must be made despite any limitation on the time within which assessments may be made.
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: