(1)Subsection (2) applies (subject to subsection (5)) if—
(a)a company (“the transferor”) ceases to carry on a trade (“trade X”) and another company (“the transferee”) begins to carry on the activities of trade X as part of its trade (“part X”), and
(b)there would have been a transfer of trade X from the transferor to the transferee had the transferee begun to carry on part X as a separate trade.
(2)This Chapter has effect as if the transferee carries on part X as a separate trade.
(3)Subsection (4) applies (subject to subsection (5)) if—
(a)a company (“the transferor”) ceases to carry on a part of a trade (“part Y”) and another company (“the transferee”) begins to carry on the activities of part Y as its trade or as part of its trade, and
(b)there would have been a transfer of a trade (including as a result of subsection (2)) from the transferor to the transferee had the transferor been carrying on part Y as a separate trade.
(4)This Chapter has effect as if the transferor had carried on part Y as a separate trade.
(5)Subsections (2) and (4) are to be ignored for the purposes of sections 941(3) and (4) and 943(3).
(6)If part of a trade is treated as a separate trade in accordance with subsection (4)—
(a)references in section 945(2) to liabilities are to be read as references to liabilities apportioned under section 952, and
(b)references in section 945(3) to assets are to be read as references to assets so apportioned.