Corporation Tax Act 2010

991 Harbour reorganisation schemes: corporation tax

(1) This section and sections 992 and 993 apply if—

(a) the trade of any body corporate other than a limited liability company is transferred to a harbour authority,

(b) the transfer is made by or under a certified harbour reorganisation scheme, and

(c) the scheme provides for the dissolution of the transferor.

(2) For the purposes of the provisions of the Corporation Tax Acts that apply—

(a) only if a person starts to carry on a trade, or

(b) only if a person ceases to carry on a trade,

the transferor is not treated as ceasing to carry on the trade, and the transferee is not treated as starting to carry it on.

(3) Subsection (4) applies if an amount (“the loss amount”) would have been available to the transferor for relief under section 45 (carry forward of trade loss against subsequent trade profits) had the transferor continued to carry on the transferred trade.

(4) The transferee is entitled to relief under section 45 in respect of the loss amount as if the transferee had made a loss in carrying on—

(a) the transferred trade, or

(b) any trade of which the transferred trade comes to form part.

(5) The loss amount is subject to any claim made by the transferor under section 37 (relief for trade losses against total profits).