PART 2 CHARITABLE COMPANIES, LIFE INSURANCE COMPANIES, ANTI-AVOIDANCE AND TREATMENT OF AMOUNTS DEDUCTED

Transfer of rights

10.  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.”, and

(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).”.