PART 2CHARITABLE COMPANIES, LIFE INSURANCE COMPANIES, ANTI-AVOIDANCE AND TREATMENT OF AMOUNTS DEDUCTED
Transfer of rights10
In section 357YM (assignment of rights to person not chargeable to corporation tax)—
a
in subsection (1), for paragraph (a) substitute—
a
a chargeable company (“the transferor”) transfers to a person who either—
i
is not a company, or
ii
is a non-qualifying company,
a right in respect of a claim, or possible claim, for restitution,
b
in subsection (3), for “is not within the charge to corporation tax under this Part” substitute
either—
a
is not a company, or
b
is a non-qualifying company.
c
for subsection (5) substitute—
5
For the purposes of this section a company is a “chargeable company” if it meets the first and second conditions.
The first condition is that the company is UK resident or carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom.
The second condition is that the company is not a charitable company and would not be exempt from corporation tax on restitution interest (were such interest to arise to it).
5A
For the purposes of this section a company is a “non-qualifying company” if—
a
it is non-UK resident, or
b
it is a charitable company, or would be exempt from corporation tax on restitution interest (were such interest to arise to it).