Part 7

Derivative contracts
Chapter 9

European cross-border transfers of business

Exception for tax avoidance cases and clearances

Tax avoidance etc
677
1
This Chapter does not apply in relation to the transfer of business if—
a
the transfer of business is not effected for genuine commercial reasons, or
b
the transfer of business forms part of a scheme or arrangements of which the main purpose, or one of the main purposes, is avoiding liability to corporation tax, capital gains tax or income tax.
2
But subsection (1) does not prevent this Chapter from applying if before the transfer of business—
a
the companies mentioned in section 674(2)(a) or (3)(a) have applied to the Commissioners for Her Majesty's Revenue and Customs, and
b
the Commissioners have notified them that they are satisfied that subsection will not have that effect.
Pt. 7 modified (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 88(1)(2)(7) (with s. 147, Sch. 17)
Pt. 7 modified by 2007 c. 3, s. 809FZZ(8) (as inserted (with effect in accordance with s. 37(4) of the amending Act) by Finance Act 2016 (c. 24), s. 37(2))
Pt. 7 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)