Explanatory Notes

Corporation Tax Act 2010

2010 CHAPTER 4

3 March 2010

Introduction

Part 22: Miscellaneous provisions

Chapter 1: Transfers of trade without a change of ownership
Section 951: Part of trade treated as separate trade

2828.This section deals with transfers of parts of trade. It is based on section 343(1) and (8) of ICTA.

2829.This section refers to “activities” of a trade and “part” of a trade, as these expressions have been the subject of judicial comment: see Falmer Jeans Ltd v Rodin (1990), 63 TC 55.(6)

2830.Section 344(5) and (6) of ICTA do not expressly provide that, if there has been an apportionment, only the assets and liabilities apportioned to the transferred trade are to be taken into account. Subsection (6) makes these points explicit.

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[1990] STC 270.