Section 775 Transfers within a group
United Kingdom
A transfer of an intangible fixed asset from one company (“the transferor”) to another company (“the transferee”) is tax-neutral for the purposes of this Part if—
at the time of the transfer both companies are members of the same group,
immediately before the transfer the asset is a chargeable intangible asset in relation to the transferor, and
immediately after the transfer the asset is a chargeable intangible asset in relation to the transferee.
For the consequences of a transfer being tax-neutral for the purposes of this Part, see section 776.
F1Part 4 of TIOPA 2010 (provision not at arm's length) does not apply in relation to a transfer to which subsection (1) applies.
Subsection (1) does not apply if—
the transferor or transferee is a qualifying society within the meaning of section 461A of ICTA (incorporated friendly societies entitled to exemption from tax), F2...
an election under section 18A has effect in relation to the transferor and the asset has at any time been held by the transferor wholly or partly for the purposes of a permanent establishment in a territory outside the United Kingdom through which the transferor carries on business.
Annotations
Textual amendments
- F1
Words in s. 775(3) substituted (with effect in accordance with s. 381(1) of the amending Act) by Taxation (International and Other Provisions) Act 2010 (c. 8), s. 381(1), Sch. 8 para. 146 (with Sch. 9 paras. 1-9, 22)
- F2
Word in s. 775(4)(a) omitted (19.7.2011) by virtue of Finance Act 2011 (c. 11), Sch. 13 paras. 5, 31
- F3
Words in s. 775(4)(b) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 648 (with Sch. 2)
- F4
S. 775(4)(c) and word inserted (19.7.2011) by Finance Act 2011 (c. 11), Sch. 13 paras. 5, 31
Notes on Part 8
Modifications
- C1
Pt. 8 modified (1.1.2010) by Northern Rock plc (Tax Consequences) Regulations 2009 (S.I. 2009/3227), regs. 1, 6(1)
- C2
Pt. 8 modified (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), ss. 601, 1184(1) (with Sch. 2)
- C3
Pt. 8 modified (1.10.2011) by Postal Services Act 2011 (c. 5), s. 93(2)(3), Sch. 2 para. 6(1); S.I. 2011/2329, art. 3
- C4
Pt. 8 modified (15.11.2011 for specified purposes, 30.3.2012 for E.W.) by Localism Act 2011 (c. 20), ss., 240(5)(o), Sch. 24 para. 1(3); S.I. 2012/628, art. 3(b)
- C5
Pt. 8 modified (1.4.2012) by Budget Responsibility and National Audit Act 2011 (c. 4), s. 29, Sch. 4 para. 3(1); S.I. 2011/2576, art. 5
- C6
Pt. 8 modified (with effect in accordance with s. 148 of the amending Act) by Finance Act 2012 (c. 14), s. 88(1)(2)(7) (with s. 147, Sch. 17)
- C7
Pt. 8 modified (6.4.2020) by Finance Act 2019 (c. 1), Sch. 5 paras. 35, 45 (with Sch. 5 para. 36)