C1SCHEDULE 1CROSS-BORDER TRANSFERS OF BUSINESS

Annotations:
Modifications etc. (not altering text)

PART 5AMENDMENT OF CAA 2001

Capital allowances25

1

Section 561 of CAA 2001 (transfer of UK trade to a company in another member state) M1 is amended as follows.

2

For subsection (1) substitute—

1

This section applies if and in so far as—

a

a qualifying company resident in one member State (“the transferor”) transfers the whole or part of a business carried on by it in the United Kingdom to one or more qualifying companies resident in one or more other member States (“the transferee” or “the transferees”),

b

section 140A M2 of TCGA 1992 (transfer of assets treated as no-gain no-loss disposal) applies in relation to the transfer, and

c

immediately after the transfer the transferee (or one or more of the transferees)—

i

is resident in the United Kingdom, or

ii

carries on in the United Kingdom through a permanent establishment a business which consists of, or includes, the business or part of the business transferred.

3

In subsection (2)(b)—

a

for “company A” substitute “ the transferor ”, and

b

for “company B” substitute “ the transferee (or each transferee) ”.

4

The heading accordingly becomes “ Transfer or division of UK business ”.