Section 357YM — Corporation Tax Act 2010: Assignment of rights to person not chargeable to corporation tax

Assignment of rights to person not chargeable to corporation tax 357YM 1 Subsection (4) applies if—

a a chargeable company (“the transferor”) transfers to a person who either—

i is not a company, or ii is a non-qualifying company, a right in respect of a claim, or possible claim, for restitution, b the transfer is made on or after 21 October 2015, and c conditions A and B are met.

2 Condition A is that the main purpose, or one of the main purposes, of the transfer is to secure a tax advantage for any person in relation to the application of the charge to tax on restitution interest under this Part.

3 Condition B is that as a result of that transfer (or that transfer together with further transfers of the rights) restitution interest arises to a person who either—

a is not a company, or b is a non-qualifying company.

4 Any restitution interest which arises as mentioned in Condition B is treated for corporation tax purposes as restitution interest arising to the transferor.

5 For the purposes of this section a company is a “chargeable company” if it meets the first and second conditions. The first condition is that the company is UK resident or carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom. The second condition is that the company is not a charitable company and would not be exempt from corporation tax on restitution interest (were such interest to arise to it). 5A For the purposes of this section a company is a “non-qualifying company” if—

a it is non-UK resident, or b it is a charitable company, or would be exempt from corporation tax on restitution interest (were such interest to arise to it).

6 In this section “ tax advantage ” has the meaning given by section 357YI.