Section 676ED — Corporation Tax Act 2010: Indirect transfers of a trade

Indirect transfers of a trade 676ED 1 Subsections (2) and (3) apply if a trade transferred by the transferred company or a co-transferred company is transferred on a subsequent occasion to another company.

2 The transferred company or (as the case may be) the co-transferred company is to be treated for the purposes of this Chapter—

a as having transferred the trade to that other company, and b as having done so at the time it was actually transferred to that other company.

3 The deemed transfer is to be treated for the purposes of this Chapter as a transfer to which Chapter 1 of Part 22 applies if the actual transfer to the other company was a transfer to which that Chapter applies.

4 Subsections (5) and (6) apply if—

a a trade (“the original trade”) is transferred by the transferred company or a co-transferred company, b the activities of the original trade are included in the activities of another trade (“the composite trade”),

and c the composite trade is transferred to another company.

5 The transferred company or (as the case may be) the co-transferred company is to be treated for the purposes of this Chapter—

a as having transferred the original trade to that other company, and b as having done so at the time the composite trade was actually transferred to that other company.

6 The deemed transfer is to be treated for the purposes of this Chapter as a transfer to which Chapter 1 of Part 22 applies if the transfer of the composite trade to the other company was a transfer to which that Chapter applies.