Section 831 — Corporation Tax Act 2009: The genuine commercial transaction requirement and clearance

The genuine commercial transaction requirement and clearance 831 1 For the purposes of this Chapter, a reconstruction, transfer or merger meets the genuine commercial transaction requirement if it—

a is effected for genuine commercial reasons, and b does not form part of a scheme or arrangements of which the main purpose, or one of the main purposes, is avoidance of liability to corporation tax, capital gains tax or income tax.

2 The conditions in subsection (1) are treated as met if before the reconstruction, transfer or merger—

a the appropriate applicant has applied to the Commissioners for Her Majesty's Revenue and Customs, and b the Commissioners have notified the appropriate applicant that they are satisfied that the requirements of subsection (1) will be met.

3 In subsection (2) “ the appropriate applicant ” means—

a in the case of an application about a reconstruction within section 818(1)(a), the transferee (within the meaning of that section),

b in the case of an application about a transfer falling within section 820 because condition A in section 819(2) is met, the transferor and the transferee (within the meaning of section 819(2)),

c in the case of an application about a transfer falling within section 820 because condition B in section 819(3) is met, the transferor and the transferee (within the meaning of section 819(3)),

d in the case of an application about a merger falling within section 821(2), the transferor (as defined in section 823(2)),

and e in the case of an application about a transfer falling within section 827(1)(a), the transferor (within the meaning of that section).

4 For the procedure on such an application, see section 832.