831The genuine commercial transaction requirement and clearanceU.K.
(1)For the purposes of this Chapter, a reconstruction, transfer or merger meets the genuine commercial transaction requirement if it—
(a)is effected for genuine commercial reasons, and
(b)does not form part of a scheme or arrangements of which the main purpose, or one of the main purposes, is avoidance of liability to corporation tax, capital gains tax or income tax.
(2)The conditions in subsection (1) are treated as met if before the reconstruction, transfer or merger—
(a)the appropriate applicant has applied to the Commissioners for Her Majesty's Revenue and Customs, and
(b)the Commissioners have notified the appropriate applicant that they are satisfied that the requirements of subsection (1) will be met.
(3)In subsection (2) “the appropriate applicant” means—
(a)in the case of an application about a reconstruction within section 818(1)(a), the transferee (within the meaning of that section),
(b)in the case of an application about a transfer falling within section 820 because condition A in section 819(2) is met, the transferor and the transferee (within the meaning of section 819(2)),
(c)in the case of an application about a transfer falling within section 820 because condition B in section 819(3) is met, the transferor and the transferee (within the meaning of section 819(3)),
(d)in the case of an application about a merger falling within section 821(2), the transferor (as defined in section 823(2)), and
(e)in the case of an application about a transfer falling within section 827(1)(a), the transferor (within the meaning of that section).
(4)For the procedure on such an application, see section 832.