Part 22

Miscellaneous provisions
Chapter 1

Transfers of trade without a change of ownership

Effect of Chapter in relation to transfers to which it applies

Modified application of section 303D
944E
1
Subsection (2) applies if—
a
this Chapter applies to a transfer of a trade,
b
the trade is a ring-fence trade,
c
an amount of a loss made in the trade was carried forward under section 303B(2) or 303D(3) to the accounting period in which the predecessor ceased to carry on the trade (“the cessation period”), and
d
any of that amount was not—
i
deducted under section 303B(4) or 303D(5) from the predecessor's profit (if any) of the cessation period,
ii
deducted from the predecessor's total profits of the cessation period on a claim under section 303C(2), or
iii
surrendered by the predecessor by way of group relief for carried-forward losses under Part 5A.
2
Subsections (3) to (6) of section 303D have effect as if—
a
the reference to so much of the amount mentioned in section 303D(1)(a) as is unrelieved in the later period were to so much of the amount mentioned in subsection (1)(c) of this section as was not deducted or surrendered as mentioned in subsection (1)(d),
b
references to the further period were to the accounting period of the successor in which the successor begins to carry on the transferred trade,
c
references to the company were to the successor, and
d
references to the trade were to the transferred trade.
3
In this section “
ring fence trade
” has the same meaning as in Part 8 (see section 277).
Ss. 944A-944E inserted (with effect in accordance with Sch. 4 para. 190 of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 4 para. 65
Pt. 22 Ch. 1 applied (with modifications) (14.7.2022) by Energy (Oil and Gas) Profits Levy Act 2022 (c. 40), Sch. 1 para. 19 (with ss. 15(1), 16(1), 17)
Pt. 22 Ch. 1 modified (15.5.2024) by S.I. 2009/2971, reg. 4(20) (as inserted by The Mutual Societies (Transfers of Business) (Tax) (Amendment) Regulations 2024 (S.I. 2024/555), regs. 1(1), 2(2)(c) (with reg. 1(2)-(5)))