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).