Part 8

Intangible fixed assets
Chapter 11

Transfer of business or trade

Tax-neutral transfers

Transfer of assets on European cross-border transfer of business
820
1
If the transfer of business includes intangible fixed assets that—
a
are chargeable intangible assets in relation to the transferor immediately before the transfer, and
b
are chargeable intangible assets in relation to the transferee immediately after the transfer,
the transfer of those assets is tax-neutral for the purposes of this Part.
2
This section applies only if the transfer of the business or part meets the genuine commercial transaction requirement (see section 831).
3
This section does not apply if the transferor is a transparent entity.
4
In this section—
- “the transfer of business” means the transfer of business mentioned in section 819(2)(a) or (3)(a), and
- “transparent entity” means a company which is resident in a member State ... and does not have an ordinary share capital.
5
For the purposes of subsection (4) an entity is resident in a relevant state if—
a
it is within a charge to tax under the law of the relevant state as being resident for that purpose, and
b
it is not regarded, for the purposes of any double taxation relief arrangements to which the relevant state is a party, as resident in a territory not within a relevant state.
Pt. 8 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 6(1)
Words in s. 820(5) substituted (31.12.2020) by The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 16(18)(b)(i) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)
Pt. 8 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)
Words in s. 820(4) omitted (31.12.2020) by virtue of The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 16(18)(a) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)
Pt. 8 modified (1.10.2011) by Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 2 para. 6(1); S.I. 2011/2329, art. 3
Pt. 8 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)
Pt. 8 modified (15.11.2011 for specified purposes, 30.3.2012 for E.W.) by Localism Act 2011 (c. 20), ss., 240(5)(o), Sch. 24 para. 1(3); S.I. 2012/628, art. 3(b)
Words in s. 820(5) substituted (31.12.2020) by The Taxes (Amendments) (EU Exit) Regulations 2019 (S.I. 2019/689), regs. 1, 16(18)(b)(ii) (with regs. 39-41); 2020 c. 1, Sch. 5 para. 1(1)
Pt. 8 modified (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 35, 45 (with Sch. 5 para. 36)
Pt. 8 modified (1.4.2012) by Budget Responsibility and National Audit Act 2011 (c. 4), s. 29, Sch. 4 para. 3(1); S.I. 2011/2576, art. 5