Section 140D — Taxation of Chargeable Gains Act 1992: Section 140C: anti-avoidance.

Section 140C: anti-avoidance. 140D 1 Section 140C shall not apply unless the transfer of the business or part is effected for bona fide commercial reasons and does not form part of a scheme or arrangements of which the main purpose, or one of the main purposes, is avoidance of liability to income tax, corporation tax or capital gains tax.

2 Subsection (1) above shall not apply where, before the transfer, the Board have on the application of the transferor notified that company that the Board are satisfied that the transfer will be effected for bona fide commercial reasons and will not form part of any such scheme or arrangements as are mentioned in that subsection.

3 Subsections (2) to (5) of section 138 shall have effect in relation to subsection (2) above as they have effect in relation to subsection (1) of that section.