Section 357YM Assignment of rights to person not chargeable to corporation tax

Subsection (4) applies if—

Condition A is that the main purpose, or one of the main purposes, of the transfer is to secure a tax advantage for any person in relation to the application of the charge to tax on restitution interest under this Part.

Condition B is that as a result of that transfer (or that transfer together with further transfers of the rights) restitution interest arises to a person who F2either—

Any restitution interest which arises as mentioned in Condition B is treated for corporation tax purposes as restitution interest arising to the transferor.

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).

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

In this section “tax advantage” has the meaning given by section 357YI.