Capital allowances: transfer of part of a trade
8(1)Where a taxable public body (“the predecessor”) is carrying on a trade and, as a result of a transfer scheme—
(a)the predecessor ceases to carry on a trade, and
(b)another taxable public body (“the successor”) begins to carry on activities of that trade as part of a trade carried on by the successor,
then that part of the trade carried on by the successor shall be treated for the purposes of paragraph 7 as a separate trade.
(2)Where a taxable public body (“the predecessor”) is carrying on a trade and, as a result of a transfer scheme—
(a)the predecessor ceases to carry on a part of a trade, and
(b)another taxable public body begins to carry on activities of that part of that trade,
then the predecessor shall be treated for the purposes of paragraph 7 and sub-paragraph (1) as having carried on that part of its trade as a separate trade.
(3)Where activities fall to be treated for the purposes of this paragraph as a separate trade, such apportionments of receipts, expenses, assets and liabilities shall be made for the purposes of CAA 2001 as may be just and reasonable.