Corporation Tax Act 2010 section 940C

Transfers to which Chapter applies

Section 940C sets out the two conditions that must both be satisfied for this Chapter's rules on transfers of trade without a change of ownership to apply.

• This Chapter applies to a transfer of a trade only where two specific conditions are both met.
• The first requirement is the ownership condition, which looks at whether the same persons hold the trade before and after the transfer (detailed in sections 941 and 942).
• The second requirement is the tax condition, which considers whether the main purpose, or one of the main purposes, of the transfer is to obtain a tax advantage (detailed in section 943).
• If either condition is not met, this Chapter does not apply to the transfer and its provisions have no effect.