Section 781 — Corporation Tax Act 2009: Character of credits and debits brought into account as a result of section 780

Character of credits and debits brought into account as a result of section 780 781 1 For the purposes of Chapter 6 (how credits and debits are given effect) credits or debits brought into account as a result of section 780 take their character from the purposes for which the relevant asset was held by the transferee immediately after the transfer.

2 But subsection (1) does not apply if conditions A and B are met.

3 Condition A is that immediately after the transfer the relevant asset was held by the transferee for the purposes of a trade, business or concern within section 747, 748 or 749.

4 Condition B is that the transferee ceased to carry on that trade, business or concern before it ceased to be a member of the group.

5 If conditions A and B are met, a credit or debit brought into account because of section 780 is treated for the purposes of Chapter 6 as a non-trading credit or debit.

6 References in this section to “the transferee” and the relevant asset” must be read in accordance with section 780.