Section 637 — Corporation Tax Act 2010: Transfer of rights to payment

Transfer of rights to payment 637 1 This section applies if—

a the company or its liquidator transfers for value to another person the right to receive a sum arising from the deposit-taking trade, and b the sum is one which, if received by the company or its liquidator, would be a winding up receipt.

2 If the transfer is at arm's length, this Chapter has effect as if the amount or value of the consideration for the transfer were a winding up receipt arising from the deposit-taking trade.

3 If the transfer is not at arm's length, this Chapter has effect as if the value of the right transferred as between parties at arm's length were a winding up receipt arising from the deposit-taking trade.