Section 849A — Corporation Tax Act 2009: Disincorporation relief: transfer values for post-FA 2002 goodwill

Disincorporation relief: transfer values for post-FA 2002 goodwill 849A 1 This section applies where—

a a company transfers its business to some or all of the shareholders of the company, and b a claim for disincorporation relief in respect of the transfer has been made under section 58 of the Finance Act 2013.

2 If section 735 applies to the transfer of the goodwill of the business, the transfer is treated for the purposes of this Part as being at the lower of—

a the tax written-down value of the goodwill, and b its market value.

3 If section 736 applies to the transfer of the goodwill of the business, the transfer is treated for the purposes of this Part as being at the lower of—

a the cost of the goodwill, and b its market value.

4 If section 738 applies to the transfer of the goodwill of the business, the proceeds of realisation of the goodwill are treated for the purposes of this Part as being nil.

5 In subsection (2)(a) the reference to the tax written-down value of the goodwill is to its tax written-down value immediately before the transfer.

6 In subsection (3)(a) “ the cost of the goodwill ” means the cost recognised for tax purposes (determined in accordance with section 736(6) and (7)).

7 In this section market value has the meaning given in section 845(5).