C1SCHEDULE 1CROSS-BORDER TRANSFERS OF BUSINESS
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
”
.
Sch. 1 modified (retrospective to 29.11.2007) by The Corporation Tax (Implementation of the Mergers Directive) Regulations 2008 (S.I. 2008/1579), regs. 1(2), 4