Section 738 — Corporation Tax Act 2010: Receipt of assets of relevant company (circumstance E)

Receipt of assets of relevant company (circumstance E) 738 1 This section applies in relation to a company (“the section 733 company”) if subsections (2) to (4) and (7) apply.

2 The section 733 company receives consideration in connection with—

a the direct or indirect transfer of assets of a relevant company (see section 739) to another such company, or b any transaction in securities in which two or more relevant companies are concerned.

3 The consideration is or represents the value of assets which—

a are available for distribution by way of dividend by a relevant company, b would have been so available apart from anything done by the relevant company, or c are trading stock of a relevant company.

4 The consideration consists of any share capital or any security issued by a relevant company.

5 So far as subsection (4) relates to share capital other than redeemable share capital, it applies only so far as the share capital is repaid (in a winding up or otherwise).

6 The reference in subsection (5) to the repayment of share capital includes a reference to any distribution made in respect of any shares in a winding up or dissolution of the relevant company.

7 The section 733 company does not pay or bear corporation tax on income in respect of the consideration (apart from this Part).

8 In this section—

a references to the receipt of consideration include references to the receipt of any money or money's worth, b “ security ” includes securities not creating or evidencing a charge on assets, and c “ share ” includes stock and any other interest of a member in a company.