Section 951 — Corporation Tax Act 2010: Part of trade treated as separate trade

Part of trade treated as separate trade 951 1 Subsection (2) applies (subject to subsection (5)) if—

a a company (“ the transferor ”) ceases to carry on a trade (“trade X”) and another company (“ the transferee ”) begins to carry on the activities of trade X as part of its trade (“part X”),

and b there would have been a transfer of trade X from the transferor to the transferee had the transferee begun to carry on part X as a separate trade.

2 This Chapter has effect as if the transferee carries on part X as a separate trade.

3 Subsection (4) applies (subject to subsection (5)) if—

a a company (“ the transferor ”) ceases to carry on a part of a trade (“part Y”) and another company (“ the transferee ”) begins to carry on the activities of part Y as its trade or as part of its trade, and b there would have been a transfer of a trade (including as a result of subsection (2)) from the transferor to the transferee had the transferor been carrying on part Y as a separate trade.

4 This Chapter has effect as if the transferor had carried on part Y as a separate trade.

5 Subsections (2) and (4) are to be ignored for the purposes of sections 941(3) and (4) and 943(3).

6 If part of a trade is treated as a separate trade in accordance with subsection (4)—

a references in section 945(2) to liabilities are to be read as references to liabilities apportioned under section 952, and b references in section 945(3) to assets are to be read as references to assets so apportioned.

7 Subsection (8) applies if—

a a company (“ the transferor ”) ceases to carry on a trade (“trade Z”),

b another company (“ the transferee ”) begins to carry on the activities of trade Z as part of its trade (“part Z”) and c by reason of this Chapter an amount of a loss made in trade Z is carried forward under section 45A(4), 45B(2), 303B(2) or 303D(3) to an accounting period of the transferee.

8 The provisions of sections 45A to 45F and 303B to 303D have effect, in so far as they apply (or re-apply) in relation to the amount carried forward (or any part of it), as if the transferee carries or carried on part Z as a separate trade.