Part 8Intangible fixed assets

Chapter 11Transfer of business or trade

Tax-neutral transfers

822Transfer of assets on European cross-border merger

1

If this section applies, the transfer of qualifying assets in the course of the merger is tax-neutral for the purposes of this Part.

2

For the purposes of this section an asset is a qualifying asset if—

a

it is a chargeable intangible asset in relation to the transferor immediately before the transfer, and

b

it is a chargeable intangible asset in relation to the transferee immediately after the transfer.

3

This section does not apply if section 818 (company reconstruction involving transfer of business) applies to any qualifying assets transferred in the course of the merger.

4

This section does not apply if—

a

one or more of the merging companies is a transparent entity, and

b

the assets and liabilities of a transparent entity are transferred to another company in the course of the merger.

5

This section applies only if the merger meets the genuine commercial transaction requirement (see section 831).

6

For the meaning of expressions used in this section, see section 823.