C1C2C3C4C5C6Part 8Intangible fixed assets
Pt. 8 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)
Pt. 8 modified (1.10.2011) by Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 2 para. 6(1); S.I. 2011/2329, art. 3
Pt. 8 modified (15.11.2011 for specified purposes, 30.3.2012 for E.W.) by Localism Act 2011 (c. 20), ss., 240(5)(o), Sch. 24 para. 1(3); S.I. 2012/628, art. 3(b)
Pt. 8 modified (1.4.2012) by Budget Responsibility and National Audit Act 2011 (c. 4), s. 29, Sch. 4 para. 3(1); S.I. 2011/2576, art. 5
Chapter 13Transactions between related parties
Transfers treated as being at market value
845Transfer between company and related party treated as at market value
1
The basic rule is that a transfer of an intangible asset—
a
from a company to a related party, or
b
to a company from a related party,
is treated for all purposes of the Taxes Acts as being at market value (as respects both the company and the related party) if condition A or B is met.
2
Condition A is that the asset is a chargeable intangible asset in relation to the transferor immediately before the transfer.
3
Condition B is that the asset is a chargeable intangible asset in relation to the transferee immediately after the transfer.
4
That rule is subject to—
a
section 846 (transfers not at arm's length),
b
section 847 (transfers involving other taxes),
c
section 848 (tax-neutral transfers), F1...
F2ca
section 848A (assets held for purposes of exempt foreign permanent establishments), and
d
section 849 (transfers involving gifts of business assets).
5
In subsection (1)—
“market value” means the price the asset might reasonably be expected to fetch on a sale in the open market, and
“the Taxes Acts” means the enactments relating to income tax, corporation tax or chargeable gains.
Pt. 8 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 6(1)