Section 879 — Corporation Tax Act 2010: Disposal of interest to associate

Disposal of interest to associate 879 1 This section applies for the purposes of this Chapter if a company disposes of an interest in an asset to a person who is the company's associate (and the interest may be the lessee's interest in a lease of the asset or the lessor's interest or any other interest).

2 The company disposing of the interest must be treated as obtaining in respect of it the greatest of—

a the sum in fact obtained by the company, b the value of the interest in the open market, and c the value of the interest to the person to whom it is in effect transferred.

3 The disposal—

a may be direct or indirect, and b may be effected by a transaction or series of transactions described in section 877(b) or 878(3).