Section 847 — Corporation Tax Act 2009: Transfers involving other taxes

Transfers involving other taxes 847 1 This section applies if—

a in a case where section 845(1) applies and the asset is transferred from the company to a related party, the transfer is at less than its market value, b in a case where that section applies and the asset is transferred to the company from the related party, the transfer is at more than its market value, and c conditions A and B apply.

2 Condition A is that the related party—

a is not a company, or b is a company in relation to which the asset is not a chargeable intangible asset immediately after the transfer to it or, as the case may be, immediately before the transfer from it.

3 Condition B is that the transfer—

a gives rise to an amount to be taken into account in calculating any person's income, profits or losses for tax purposes because of a relevant provision, or b would do so apart from section 845(1).

4 If this section applies, section 845(1) does not apply in relation to the calculation referred to in subsection (3) for the purposes of any relevant provision.

5 In this section “ relevant provision ” means—

a Chapter 2 of Part 23 of CTA 2010 (matters which are distributions), except section 1000(2),

and b Part 3 of ITEPA 2003 (employment income: earnings and benefits etc treated as earnings).