Part 12

Supplementary provisions
Chapter 4

Partnerships, successions and transfers

Transfer or division of UK business
561
1
This section applies if and in so far as—
a
a qualifying company resident in one
relevant 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
relevant 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 the transferor before the transfer is to be treated after the transfer as having been done to or by the 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 relevant state.
4A
In this section “relevant state” means the United Kingdom or a member State.
5
If this section applies, section 948 of CTA 2010 (modified application of CAA 2001 in relation to trade transfers without a change of ownership) does not apply.
S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7
S. 561 heading substituted (with effect in accordance with reg. 3(1) of the amending S.I.) by The Corporation Tax (Implementation of the Mergers Directive) Regulations 2007 (S.I. 2007/3186), reg. 1(2), Sch. 1 para. 25(4) (as modified by S.I. 2008/1579, regs. 1(2), 4(1))
S. 561(1) substituted (with effect in accordance with reg. 3(1) of the amending S.I.) by The Corporation Tax (Implementation of the Mergers Directive) Regulations 2007 (S.I. 2007/3186), reg. 1(2), Sch. 1 para. 25(2) (as modified by S.I. 2008/1579, regs. 1(2), 4(1))
Words in s. 561(2)(b) substituted (with effect in accordance with reg. 3(1) of the amending S.I.) by The Corporation Tax (Implementation of the Mergers Directive) Regulations 2007 (S.I. 2007/3186), reg. 1(2), Sch. 1 para. 25(3)(a) (as modified by S.I. 2008/1579, regs. 1(2), 4(1))
Words in s. 561(2)(b) substituted (with effect in accordance with reg. 3(1) of the amending S.I.) by The Corporation Tax (Implementation of the Mergers Directive) Regulations 2007 (S.I. 2007/3186), reg. 1(2), Sch. 1 para. 25(3)(b) (as modified by S.I. 2008/1579, regs. 1(2), 4(1))
Words in s. 561(5) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 360 (with Sch. 2)
S. 561(4A) inserted (31.12.2020) by The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 10(5)(c) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)
Words in s. 561(1)(a) substituted (31.12.2020) by The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 10(5)(a)(i) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)
Words in s. 561(1)(a) substituted (31.12.2020) by The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 10(5)(a)(ii) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)
Words in s. 561(4) substituted (31.12.2020) by The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 10(5)(b) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)