SCHEDULES

SCHEDULE 7Transfer schemes: tax

Corporation tax: continuity of trade

4I1

1

This paragraph applies if as the result of a transfer scheme—

a

a transferor ceases a trade, and

b

a transferee commences it.

2

In connection with the computation of profits and losses for the purpose of corporation tax in respect of periods wholly or partly after the commencement of the transfer scheme—

a

the transferee shall be treated as having always carried on the trade, and

b

the trade shall be considered separately from any other trade of the transferee (with any necessary apportionment being made).