Part 12 Supplementary provisions

Chapter 4 Partnerships, successions and transfers

561F1Transfer or division of UK business

F2(1)

This section applies if and in so far as—

(a)

a qualifying company resident in one member State (“the transferor”) transfers the whole or part of a business carried on by it in the United Kingdom to one or more qualifying companies resident in one or more other member States (“the transferee” or “the transferees”),

(b)

section 140A of TCGA 1992 (transfer of assets treated as no-gain no-loss disposal) applies in relation to the transfer, and

(c)

immediately after the transfer the transferee (or one or more of the transferees)—

(i)

is resident in the United Kingdom, or

(ii)

carries on in the United Kingdom through a permanent establishment a business which consists of, or includes, the business or part of the business transferred.

(2)

If this section applies—

(a)

the transfer itself does not give rise to any allowances or charges under this Act, and

(b)

in relation to assets included in the transfer, anything done to or by F3the transferor before the transfer is to be treated after the transfer as having been done to or by F4the transferee (or each transferee).

(3)

If, for the purposes of subsection (2)(b), expenditure falls to be apportioned between assets included in the transfer and other assets, the apportionment is to be made in a just and reasonable manner.

(4)

In this section “ qualifying company ” means a body incorporated under the law of a member State.

(5)

If this section applies, F5section 948 of CTA 2010 (modified application of CAA 2001 in relation to trade transfers without a change of ownership) does not apply .