Regulation 10 Transfer of rights

in subsection (1), for paragraph (a) substitute—

“(a)

a chargeable company (“the transferor”) transfers to a person who either—

(i)

is not a company, or

(ii)

is a non-qualifying company,

a right in respect of a claim, or possible claim, for restitution,”,

in subsection (3), for “is not within the charge to corporation tax under this Part” substitute

“either—

(a)

is not a company, or

(b)

is a non-qualifying company.”, and

for subsection (5) substitute—

“(5)

For the purposes of this section a company is a “chargeable company” if it meets the first and second conditions.

• The first condition is that the company is UK resident or carries on a trade in the United Kingdom through a permanent establishment in the United Kingdom.

• The second condition is that the company is not a charitable company and would not be exempt from corporation tax on restitution interest (were such interest to arise to it).

(5A)

For the purposes of this section a company is a “non-qualifying company” if—

(a)

it is non-UK resident, or

(b)

it is a charitable company, or would be exempt from corporation tax on restitution interest (were such interest to arise to it).”.