Section 827 — Corporation Tax Act 2009: Claims to postpone charge on transfer

Claims to postpone charge on transfer 827 1 This section applies if—

a a UK resident company carrying on a trade outside the United Kingdom through a permanent establishment (“ the transferor ”) transfers that trade or part of it to a non-UK resident company (“ the transferee ”),

b the transfer meets conditions A, B and C, c the transfer includes intangible fixed assets that are chargeable intangible assets in relation to the transferor immediately before the transfer (“relevant assets”),

and d the transferor makes a claim under this section.

2 If this section applies, this Part applies in accordance with sections 828 to 830.

3 Condition A is that the transfer includes—

a the whole assets of the transferor used for the purposes of the trade or part, or b the whole of those assets other than cash.

4 Condition B is that the transfer is wholly or partly in exchange for securities consisting of—

a shares within subsection (5) that are issued by the transferee to the transferor, or b shares within paragraph (a) and loan stock that is so issued.

5 Shares are within this subsection if they—

a amount in all to at least one quarter of the ordinary share capital of the transferee, or b do so if taken together with any other shares in the transferee already held by the transferor.

6 Condition C is that the transfer meets the genuine commercial transaction requirement (see section 831).

7 No claim may be made under this section if a claim is made in relation to the transfer under section 116(6) of TIOPA 2010 (European cross-border transfers of business: application for section 117 of that Act to apply).

8 In sections 828 to 830 “ transferor ”, “ transferee ” and “ relevant assets ” have the same meaning as in this section.