Section 426 — Corporation Tax Act 2009: Tax avoidance etc

Tax avoidance etc 426 1 This Chapter does not apply in relation to the transfer of business if—

a the transfer of business is not effected for genuine commercial reasons, or b the transfer of business forms part of a scheme or arrangements of which the main purpose, or one of the main purposes, is avoiding liability to corporation tax, capital gains tax or income tax.

2 But subsection (1) does not prevent this Chapter from applying if before the transfer of business—

a the companies mentioned in section 421(3)(a), (4)(a) or (5)(a) have applied to the Commissioners for Her Majesty's Revenue and Customs, and b the Commissioners have notified them that they are satisfied that subsection will not have that effect.