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Paragraph 8

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

Where a taxable public body (“the predecessor”) is carrying on a trade and, as a result of a transfer scheme—

(a)

the predecessor ceases to carry on a trade, and

(b)

another taxable public body (“the successor”) begins to carry on activities of that trade as part of a trade carried on by the successor,

then that part of the trade carried on by the successor shall be treated for the purposes of paragraph 7 as a separate trade.

(2)

Where a taxable public body (“the predecessor”) is carrying on a trade and, as a result of a transfer scheme—

(a)

the predecessor ceases to carry on a part of a trade, and

(b)

another taxable public body begins to carry on activities of that part of that trade,

then the predecessor shall be treated for the purposes of paragraph 7 and sub-paragraph (1) as having carried on that part of its trade as a separate trade.

(3)

Where activities fall to be treated for the purposes of this paragraph as a separate trade, such apportionments of receipts, expenses, assets and liabilities shall be made for the purposes of CAA 2001 as may be just and reasonable.