Article 3 Capital allowances: transfer of a trade
This article applies where BWB is carrying on a trade and, as a result of a relevant transfer—
BWB ceases to carry on that trade, and
CRT or CRT CIC begins to carry on that trade.
For the purposes of the allowances and charges provided for by CAA 2001, the trade is not to be treated as permanently discontinued, nor a new trade as set up; but paragraphs (3) and (4) are to apply.
There are to be made to or on CRT, or CRT CIC, in accordance with CAA 2001, all such allowances and charges as would, if BWB had continued to carry on the trade, have fallen to be made to or on BWB.
The amounts of those allowances and charges are to be computed as if—
CRT or CRT CIC had been carrying on the trade since BWB began to do so, and
everything done to or by BWB had been done to or by CRT or CRT CIC,
but so that a relevant transfer, so far it relates to assets in use for the purposes of the trade, is not treated as giving rise to an allowance or charge.